It changes rating to reflect completion of placement issue
MOODY’S Investors Service yesterday changed its ratings outlook for Ascendas Real Estate Investment Trust (A-Reit) from ‘negative’ to ’stable’.
Its outlook for A-Reit’s ‘Baa1′ corporate family and ‘Baa2′ senior unsecured ratings was changed to reflect the completion of A-Reit’s private placement of equity issuance, Moody’s senior analyst Kathleen Lee said.
She expects the $302 million private placement, announced earlier this month, to improve A-Reit’s liquidity and balance sheet position, and enhance its credit metrics.
‘The private placement also reflects A-Reit’s ongoing efforts to improve its capital management thereby strengthening its balance sheet, enhance its financial flexibility and address its previous reliance on revolving uncommitted facilities to support asset growth,’ said Ms Lee.
Moody’s said that it ‘remains cautious of weakness in A-Reit’s operating environment and the new supply of industrial properties coming onstream from 2009 onwards’ but expects this to be manageable within the trust’s current rating, given its good quality assets and improved financial metrics.
A-Reit has a portfolio of 89 properties in Singapore, including business and science park properties, industrial properties, and logistics and distribution centres.
Source : Business Times – 25 Aug 2009
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