Moody's assigns Baa2 rating to GLP's proposed note issuance

Singapore

RATING agency Moody's has assigned a Baa2 rating with a stable outlook to Global Logistic Properties' proposed note issuance under its US$2 billion euro medium-term note programme.

Moody's cited the mainboard-listed firm's large-scale operations in Japan and China, stable income, good reputation and prudent financial management for the rating, which could be upgraded if GLP improved its debt leverage and debt servicing capacity.

However, the agency said that the ratings were constrained by its growing portfolio in emerging markets, namely China and Brazil, revenue concentration in Japan and China and ongoing capital needs to fund growth. The ratings could be downgraded if GLP's Ebitda (earnings before interest, tax, depreciation and amortisation) falls sharply due to economic deterioration in Japan or China or if its exposure to emerging markets, excluding Chi…