S&P rates Yuexiu REIT BBB

Standard & Poor's said it assigned a BBB long-term corporate credit rating to Yuexiu Real Estate Investment Trust, along with a cnA Greater China regional scale rating.

The outlook is stable.

S&P also said it assigned a BBB rating and cnA Greater China regional scale rating to a medium-term notes program by Yuexiu REIT MTN Co. Ltd., a special purpose vehicle. Yuexiu REIT guarantees the program.

The ratings reflect the trust's increasing recurring cash flow and its good-quality assets in prime locations, the agency said.

The ratings also consider the satisfactory operating stability at five of Yuexiu REIT's six properties and a good level of parental support for the company's operations and financial management, S&P said.

On the other hand, the acquisition of Guangzhou International Finance Center, which has low occupancy, has weakened the trust's cash flow adequacy and increased its geographic concentration, the agency added.

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