Moody’s: VI-REIT notes Ba2

Moody's Investors Service said it assigned a first-time Ba1 corporate family rating to Viva Industrial Real Estate Investment Trust (VI-REIT).

The agency also said it assigned a provisional Ba2 rating to the S$500 million multi-currency medium-term note program established by Viva iTrust MTN Pte. Ltd., and a definitive Ba2 rating to the S$100 million 4.15% senior unsecured 2018 notes drawn down under the program.

The program was established by VI-REIT through its wholly owned subsidiary – Viva iTrust MTN Pte. Ltd. – and is unconditionally and irrevocably guaranteed by Perpetual (Asia) Ltd., which previously was known as the Trust Co. (Asia) Ltd. in its capacity as the trustee of VI-REIT, Moody’s noted.

The outlook is stable.

The ratings are underpinned by the company’s balanced portfolio with a mix of multi-tenanted and master-leased assets, income diversification from its end tenant base and continued improvement in cash flow generation as its portfolio occupancy ramps up, the agency said.

The ratings are constrained by the company’s small scale, concentration risk at its two business park assets, lower occupancy rates and acquisition risk from its portfolio growth strategy, Moody’s said.

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