Moody's cuts Shin Kong No. 1 REIT

Moody's Investors Service said it downgraded Shin Kong No. 1 Real Estate Investment Trust Fund's national scale long-term issuer rating to Aa3.tw and affirmed its national scale short-term issuer rating at TW-1.

The outlook is stable.

The downgrade was prompted by the recent acquisition of Shin Kong Zhong Shan Building through a 10-year mortgage loan in April 2009, Moody's said.

Although the acquisition has improved the portfolio diversification, the increased leverage negatively affects its financial structure, flexibility and its ability to withstand adverse economic conditions, the agency said.

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