Moody’s rates Vicinity Centres notes A2

Moody's Investors Service said it assigned a provisional A2 rating to the unlimited Australian dollar-denominated medium-term note program of Vicinity Centres RE Ltd. as responsible entity for Vicinity Centres Trust.

At the same time, the agency assigned am A2 senior unsecured rating to the inaugural issuances under the program, totaling A$400 million. The notes are guaranteed by Vicinity Ltd. and Vicinity Funds RE Ltd. as responsible entity of Vicinity NVN Trust.

The outlook is stable.

Proceeds are expected to be applied toward repayment of existing debt and general corporate purposes.

Moody’s said the A2 issuer rating reflects Vicinity Centres' strong market position in the Australian retail property sector, following its creation with the merger of Novion Property Group (unrated) and Federation Centres (unrated) in June 2015.

At the same time, the rating recognizes the REIT's stable and predictable level of operating income, as well as its extensive and diversified portfolio of predominantly regional and sub-regional retail shopping centers in Australia, the agency explained.

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