S&P downgrades Viva

Standard & Poor’s said it lowered the long-term corporate credit rating on Viva Industrial REIT to BB from BB+.

The outlook is stable.

S&P also said it lowered the long-term issue rating on Viva’s guaranteed senior unsecured medium-term notes program and S$100 million drawdown to BB+ from BBB-.

The agency also said it lowered the long-term Asean regional scale rating on the REIT to axBBB- from axBBB and on the notes to axBBB from axBBB+.

S&P said it lowered the rating because of an expectation that Viva’s balance sheet will weaken with the REIT’s aggressive debt-funded acquisition plans over the next 12- to 18-months.

Viva’s uncertain risk tolerance and aggressive growth appetite are key rating weaknesses, the agency said.

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