Investors Service of Moody’s has altered its evaluation outlook yesterday, from “negative” to ”stable” for the Ascendas Real Estate Investment Trust (A-REIT).
According to Kathleen Lee, the senior analyst of Moody’s, its outlook for A-REIT’s ‘Baa1′ business family and ‘Baa2′ unsecured senior evaluations has been altered to expose the trust’s private placement of the equity issuance completion.
She is expecting a private placement worth of $302 million, which has been publicised at the beginning of this month, in order to develop A-REIT’s balance and liquidity sheet position, as well as improve the credit metrics of A-REIT.
"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,” Miss Lee said.
According to Moody’s, they will remain vigilant of the weak points in the operating environment of A-REITs as well as to the new stock of industrial properties that are coming on stream starting in 2009 onwards. However, Moody’s has already anticipated this to be managed within the current rating of the trust, given its improved financial metrics and better quality assets.
Ascendas Real Estate Investment Trust has a selection of 89 properties located in Singapore, which include industrial properties, science and business park properties, and distribution and logistics centres.