Moody’s: Link REIT notes A2

Moody's Investors Service said it assigned an A2 rating to the dollar-denominated senior unsecured notes to be issued by the Link Finance (Cayman) 2009 Ltd., a wholly-owned financing subsidiary of Link Real Estate Investment Trust (Link REIT).

These notes are irrevocably and unconditionally guaranteed by the Link Holdings Ltd., Link Properties Ltd. and HSBC Institutional Trust Services (Asia) Ltd., Moody’s said.

Link REIT's A2 issuer rating is unchanged and its outlook is stable, the agency said.

The notes will be issued under the Link Finance (Cayman) 2009 Ltd.'s $3 billion medium-term note program, Moody’s said.

The proceeds will be used to refinance existing and future eligible green projects in accordance with Link REIT's green bond framework, the agency said.

The proposed green bond will not materially increase Link REIT's debt leverage because the proceeds will be primarily used for refinancing its existing revolving facilities, Moody’s said.

The bond will extend Link REIT's debt maturity profile and further strengthen its strong liquidity position, the agency added.

Over the next 12- to 18-months, Moody's said it expects Link REIT's adjusted debt-to-EBITDA to slightly increase to between 4.5x to 4.7x.

The ratings also consider the resilience of its retail property sector to economic downturns as a result of the basic goods and services that the businesses in these properties in Hong Kong offer to residents, the agency said.

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