Goodman coming good

Moody's is continuing its review for possible downgrade initiated in late June, of the 'Baa3' and 'Ba1' senior and subordinated credit ratings assigned to the Goodman Group. Moody's note followed Goodman's announcement of a A$1.3 million underwritten equity and A$500 million preference security issue and debt extension.

Moody's observed that following the capital raising, the headstock and look-through (to the underlying managed funds) leverage metrics are expected to improve considerably, providing the group with a higher degree of financial flexibility to deal with the challenging operating environment.

Moody's now expects that the credit ratings will be affirmed at the conclusion of the review.