Moody's changes Singapore REITs

Moody's Investors Service said it took multiple rating actions on some of its rated Singapore real estate investment trusts.

The corporate family ratings of the following REITs were replaced with issuer ratings, and their senior ratings were upgraded by one notch:

• CapitaMall Trust's A2 corporate family rating was replaced with an A2 issuer rating, and the senior rating for CMT MTN Pte. Ltd. was upgraded to A2 from A3;

• Ascendas REIT's A3 corporate family rating was replaced with an A3 issuer rating, and its senior rating was upgraded to A3 from Baa1; and

• CapitaCommercial Trust's Baa1 corporate family rating was replaced with a Baa1 issuer rating, and the senior rating was upgraded to Baa1 from Baa2.

The outlook for all the above ratings is stable.

The following issuers' corporate family ratings were replaced:

• Frasers Centrepoint Trust's Baa1 corporate family rating was replaced with a Baa1 issuer rating;

• Mapletree Logistics Trust's Baa1 corporate family rating was replaced with a Baa1 issuer rating, and its Baa1 senior rating and Baa3 preference stock rating were affirmed;

• Suntec REIT's corporate family rating was replaced with a Baa2 issuer rating; and

• Keppel REIT's corporate family rating was replaced with a Baa3 issuer rating.

The outlook for Keppel is positive. The outlook for the remaining ratings is stable.

The agency said the rating actions follow a sizeable reduction in secured over unsecured debt among many rated Singapore REITs over recent years, which no longer necessitates unsecured debt ratings and issuer ratings to be notched down from the corporate family ratings. Moody's believes that this trend is sustainable, as REIT's are expected to continue to opt predominantly for unsecured debt financing going forward.

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