Moody’s turns Mapletree view to negative

Moody’s Investors Service said it changed its outlook to negative from stable for Mapletree Pan Asia Commercial Trust (Mpact), Mpact Treasury Co. Pte. Ltd., Mapletree North Asia Commercial Trust Treasury Co. (S) Pte Ltd. and Mapletree North Asia Commercial Treasury Co. (HKSAR) Ltd.

"The change in outlook to negative reflects our view that Mpact's credit metrics will remain weak over the next 12-18 months. In the absence of debt reduction through asset sales or equity issuances, we do not expect Mpact's credit metrics to improve meaningfully," said Yu Sheng Tay, a Moody's analyst, in a press release.

"Earnings recovery at Mpact's North Asia properties, which accounted for nearly half of the trust's portfolio, has been tepid because of lower occupancy levels, negative rental reversions and unfavorable foreign currency movements," Tay added.

The agency also affirmed the issuers’ Baa1 ratings.

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