S&P upgrades Frasers

Standard & Poor's said it raised the long-term corporate credit rating on Frasers Commercial Trust to BB+ from BB.

The outlook is stable.

The agency also said it raised the company's long-term Asean regional scale rating to axBBB+ from axBBB.

The upgrade reflects an expectation that the company will maintain its improved financial risk profile over the next two- to three-years due to its reduced debt burden, said Kah Ling Chan, an S&P analyst.

Frasers has sold its non-core assets and used the proceeds to reduce debt and partly redeem its convertible perpetual preferred units, Chan said. Following the asset divestment, the company has a portfolio of quality office buildings in Singapore and Australia. Portfolio profitability also has improved after the asset disposal, the analyst said.

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