Moody's cuts MacarthurCook to Caa1

Moody's Investors Service said it downgraded MacarthurCook Industrial REIT's corporate family rating to Caa1 from B2. This concludes a rating review that was extended in April.

The outlook is negative.

The downgrade reflects heightened financing pressure facing the company as a result of its funding requirement to complete its S$91 million acquisition of 4A International Business Park by the fourth quarter of 2009, Moody's said.

The company faces strained financial flexibility as all its assets are encumbered, its banking relationships are limited, while it also lacks a strong sponsor, the agency said. As a result, there is substantial near-term uncertainty as to whether it will be able to secure new funding to settle the asset acquisition, Moody's said.

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