Moody's Investors Service has placed the A2/Negative ratings of Westfield Group on review for possible downgrade. The action was prompted by the Group's announcement that Westfield Group will undertake a restructure which will involve the transfer of approximately AU$12 bn of Australian and New Zealand assets into a new listed property trust, the Westfield Retail Trust.
Moody's Investors Service has placed the A2/Negative ratings of Westfield Group on review for possible downgrade. The action was prompted by the Group's announcement that Westfield Group will undertake a restructure which will involve the transfer of approximately AU$12 bn of Australian and New Zealand assets into a new listed property trust, the Westfield Retail Trust.
The restructure is expected to result in a material decline in Westfield Group's total asset size and contributions from its Australian and New Zealand asset base, which is a key strength and supporting factor for the 2 rating. After the transaction, the proportion of Australian and New Zealand shopping centre assets will reduce from 51% of group assets to around 35% of group assets.
The transaction will also result in Westfield Group receiving about AU$4.4 bn in cash which is expected to be used for an equivalent reduction of
its interest bearing liabilities and thus overall interest expense, substantially offsetting the loss of income from the Australia and New Zealand assets.
