Moody's confirms Mapletree Logistics

Moody's Investors Service said it confirmed the Baa2 corporate family rating of Mapletree Logistics Trust with a negative outlook. This concludes the review for possible downgrade that began in January.

The action follows Mapletree's solid progress in terming out a large proportion of its short-term debt into three-year loans with an expectation that short-term debt will reduce, once current documentation is completed, to about 20% of total debt, Moody's said.

Moody's said Mapletree demonstrates better financial flexibility relative to other S-REITs as its S$1.6 billion of debt is on unsecured terms.

However, Mapletree's 58% leverage is high for the rating and is unlikely to reduce in the short term as equity markets continue to stay weak, the agency said.

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