Moody's: Link outlook stable

Moody's Investors Service said it changed the outlook of Link Real Estate Investment Trust's A3 corporate family and senior unsecured debt ratings from positive to stable.

"The change of outlook is driven by Moody's expectation of a weakening in the Hong Kong retail market, which will slow The Link's positive rental reversion in the near future," Peter Choy, a Moody's vice president, said in a statement.

"In addition, the Link will face the challenge of refinancing HK$2.7 billion of debt maturing in 2009," Choy said. "While Moody's expects the company will be able to refinance such debt, it will come at a higher cost given the current tight credit environment."

Link's A3 corporate family rating is supported by the company's stable recurring rental income and relatively low debt gearing, absence of committed acquisitions and property development activities, the agency said.

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