Link Securities | Credit rating agency Moody’s has upgraded Merlin Properties’ long-term issuer rating to “Baa1” from “Baa2”, the digital portal Bolsamania.com reported yesterday. In addition, the outlook has been changed from “positive” to “stable”. This upgrade, as they point out, reflects good operating performance driven by continued rental growth, sustainably lower leverage and long-term benefits from an improving business profile that is shifting towards favourable asset classes with a prudent funding approach.
As such, Merlin Properties’ Baa1 rating is underpinned by the company’s “strong balance sheet and management’s commitment to moderate leverage, its large scale and its portfolio of diversified, good quality properties”.
In addition, the rating also reflects the company’s strategy to “strengthen its business profile through investments in structurally favoured real estate segments, such as logistics and, recently, data centres, combined with management’s track record of creating value in investments and delivering strong operating results”.
