Fitch cuts Parkway Life to BBB

Fitch Ratings said it downgraded Parkway Life Real Estate Investment Trust's long-term issuer default rating to BBB from BBB+ and Parkway Life MTN Pte. Ltd.'s S$500 million multicurrency medium-term note program rating to BBB from BBB+.

The outlook is stable.

The ratings benefit from the company's good interest coverage, low cost of debt, low refinancing risk, stable rental mechanism, diversified source of patients and strong position in the healthcare industry, Fitch said.

However, its weaker sponsor, Parkway Holdings Ltd., has a negative impact on the credit profile of Parkway Life REIT given that it still relies heavily on lease payments from Parkway Hospital Singapore Pte. Ltd., the agency said.

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