Moody’s cuts Fortress REIT

Moody's Investors Service said it downgraded the corporate family rating of Fortress REIT Ltd. to Ba2 from Ba1 and affirmed the Not Prime short-term issuer rating.

Concurrently, Moody's downgraded the long-term corporate family rating national scale rating to A1.za from Aa3.za, and affirmed the short-term national scale issuer rating of Prime-1.za.

The outlook remains negative.

The agency said the downgrade reflects Moody's view that Fortress continues to manage its liquidity in a way that it is overly reliant on the refinancing of existing debt as it comes due.

This leads to refinancing risk in the next 12 to 18 months in the context of likely pressure on rental income due to the lockdown in South Africa and dislocated credit markets, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.