The Commercial Mortgage-Backed Securities of CapitaMall Trust (CMT) are still secured by robust cashflows, according to the trust.
CapitaMall Trust made the remarks in response to reports that Moody’s has downgraded its Series 30 and Series 25 Notes to Aa1 from Aaa.
The rating downgrade of Moody’s was due to the effect of the unilateral change of the credit ratings agency in its rating guidelines for commercial mortgage-backed securities transactions in Singapore, said CMT.
Ratings for the same bonds released by Fitch and Standard & Poor’s are still at “AAA”, it said.
The structured rating change made by Moody’s does not have an impact on its corporate rating, which is still at “A2”, it added.
It also said that the Notes are supported by the value of eight of its quality retail properties, which include Junction 8 and Tampines Mall.
Following the repayment of its Series 18 Notes that mature this month, CMT said there could be a 26.6 percent to 22.9 percent improvement in its loan to asset value for the Remaining Notes.
The debt service coverage ratio is also likely to improve 6.2 times to 7 times.