Moody's rates MacarthurCook Baa3

Moody's Investors Service said it assigned MacarthurCook Industrial REIT a Baa3 corporate family rating.

The outlook is stable.

"The rating reflects [the company's] steady income stream, supported by its portfolio of good quality industrial properties in Singapore and its relatively long lease maturity profile," Nancy Koh, a Moody's vice president and senior analyst, said in an agency rating.

Moody's said the assets are well maintained and are close to Changi Airport, port facilities, relevant amenities, public transport and major arterial road networks. They also have seasoned operating histories and exhibit stable and high occupancy rates.

"The rating also reflects the expectation that [the company] will prudently execute its acquisitive strategy as it expands its portfolio to achieve economies of scale and enhance its access to the capital markets," Koh said.

The agency said it expects the company to keep leverage within 40% to 45% on a sustained basis, even as it expands, and to maintain a ratio of total debt to EBITDA below 8 times and total debt to total assets below 35% on a sustained basis.

The strengths are tempered by the company's small size, limited asset diversification and tenant concentration, Koh said.

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