Moody's rates Fortress REIT Ba1

Moody's Investors Service said it assigned a corporate family rating of Ba1 to Fortress REIT Ltd., and withdrew the long-term Baa3 issuer rating in line with the agency's practice for companies without investment-grade ratings.

Moody's also said it downgraded the short-term rating to not-prime from prime-3.

The agency also has assigned a long-term national scale rating of Aa3.za and withdrew its long-term Aa1.za national scale issuer rating.

Moody's also affirmed the company's short-term national scale rating of prime-1.za.

The outlook is negative.

The downgrade reflects a view that Fortress has reduced access to capital and a weakening liquidity profile based on an liquidity assessment, the agency said.

Moody's said it estimates that Fortress' ability to access the equity and bond markets is likely to remain constrained until the conclusion of the South African Financial Sector Conduct Authority's investigation.

The downgrade also considers the company's weakening liquidity profile, Moody's said.

The ratings are underpinned by its niche sector exposure to regional retail centers along key transportation nodes and high quality logistics properties across South Africa, the agency said.

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