Fitch revises Ascott REIT view to negative

Fitch Ratings said it revised Ascott REIT's outlook to negative from stable and affirmed the trust's long-term issuer default rating at BBB.

The agency also affirmed the REIT's BBB senior unsecured debt rating, as well as the BBB long-term ratings on the REIT's S$2 billion multicurrency medium-term note program and the senior unsecured notes under the program. The notes are issued by the trust's wholly owned subsidiary, Ascott REIT MTN Pte. Ltd., and guaranteed by DBS Trustee Ltd. in its capacity as trustee of Ascott REIT.

“The negative outlook reflects the challenges facing the global travel, hospitality and lodging industry over the next 12-24 months, which are likely to constrain Ascott REIT's operating cash flows and keep leverage elevated,” Fitch said in a press release.

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