Standard & Poor’s Ratings Services today announced it had assigned its ‘A’ long-term debt rating to Investa Commercial Property Fund’s (ICPF; A-/Stable/--) senior-secured A$500 million medium-term note (MTN) program. This follows ICPF being assigned an ‘A-’ long-term corporate credit rating) earlier this month.
The rating on the program reflects overcollateralization of pledged assets to secured debt, with issuance under the program ranking pari passu with ICPF’s other senior-secured debt on issue. ICPF is a core property fund which holds a diversified portfolio of eleven premium grade Australian office buildings, valued at more than $1.275 billion.
Located primarily in the Sydney and Melbourne CBDs, the portfolio has an occupancy rate of 97.7% and a weighted average lease expiry of 5.6 years. This is underpinned by strong tenant retention rates, and long lease covenants to solid tenants, such as Telstra, Deutsche Bank, Jones Lang LaSalle and State and Federal government departments.
In the statement issued earlier this month on the ‘A-‘ long term corporate credit rating assigned to the Fund, Standard & Poor’s Credit Analyst Jennifer Wee said: “The rating on ICPF reflects our view of the fund’s high-quality and well-located portfolio of office assets, conservative investment and operating strategy, and moderate financial policies.”
Commenting on the ratings Peter Menegazzo, Fund Manager of ICPF said: “The granting of these ratings is a major achievement for the Fund and supports our commitment to a prudent, yet value-enhancing management approach.
“Going forward we expect to maintain a conservative liquidity and funding profile, whilst taking advantage of the strengthening office market, particularly in Sydney and Melbourne.”