S&P rates FCT MTN notes BBB+

S&P said it assigned its BBB+ long-term issue rating and axA+ long-term Asean regional scale rating to the unsecured notes that FCT MTN Pte. Ltd. issued.

The S$50 million series 010 (2.76%) notes are issued under the S$1 billion multi-currency medium-term note program of Frasers Centrepoint Trust (FCT: BBB+/stable/--; axA+/--), and will mature on June 21, 2021.

FCT MTN is a wholly owned subsidiary of HSBC Institutional Trust Services (Singapore) Ltd. HSBC Institutional, in its capacity as trustee of FCT, unconditionally and irrevocably guarantees the notes.

The proceeds will go toward refinancing FCT's secured bank borrowings due in July 2016 and financing its general working capital purposes. After the refinancing, encumbered assets will decline to about 15% from 30% of total assets.

S&P said the rating reflects FCT’s strong market position and stable recurring income with well-spread lease expiries. FCT's small portfolio of six assets tempers these strengths.

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