Moody’s affirms Rwanda B2 rating

Moody’s affirms Rwanda B2 rating

Moody’s Ratings has upgraded Five Point Holdings, LLC’s corporate family rating to B2 from B3, while maintaining a stable outlook for the company. The ratings agency also assigned a B2 rating to Five Point Operating Company, LP’s proposed $450 million senior unsecured notes due 2030 .

The upgrade reflects improved debt leverage metrics resulting from a 28% reduction in debt since year-end 2023. Moody’s expects leverage to remain around 16% debt/book capitalization through 2026. Proceeds from the proposed notes and cash on hand will be used to fully redeem Five Point Operating Company’s existing $1.5 million senior unsecured notes due 2025 and $523.5 million senior unsecured notes due 2028. Upon completion, the ratings on these notes will be withdrawn .

The transaction reduces Five Point’s refinancing risk and extends its maturity profile. The company’s only maturity over the next five years is $100 million of its senior unsecured revolving credit facility expiring in July 2027. Despite the upgrade, Five Point’s B2 rating remains constrained by its limited scale, with just $200 million in annual revenue and significant dependence on the Great Park Venture development in Irvine, CA .

Key credit strengths include low debt leverage and no near-term maturities. Distributions from unconsolidated entities are expected to cover the company’s annual cash interest payments of approximately $40 million, down from $55 million paid in 2024. Five Point maintains good liquidity with $457 million cash on hand as of June 30, 2025, and full access to a $125 million senior unsecured revolving credit facility. The company’s unencumbered land portfolio had a book value of $2.4 billion as of June 30, 2025 .

Moody’s indicated that a ratings upgrade could occur if Five Point increases scale and diversification while maintaining conservative financial policies, with debt/book capitalization sustained below 25%. Conversely, a downgrade might happen if debt/book capitalization exceeds 30% or if operating performance deteriorates .