S&P: AR-REIT view to negative

Standard & Poor's said it revised the outlook on AmanahRaya Real Estate Investment Trust (AR-REIT) to negative from stable and affirmed its BBB- long-term corporate credit rating.

The agency also said it lowered its Asean scale rating to axBBB+ from axA-.

The negative outlook reflects the potential change in its ownership under the planned asset injection from Perbadanan Kemajuan Negeri Selangor, the state development corporation for Selangor state, which could weaken the extraordinary support from the Malaysian government, S&P said.

The rating reflects the company's high geographic and tenant concentration, aggressive portfolio growth, increasing leverage and exposure to higher-risk office properties, the agency said.

The company's improving asset diversification, stable rental income and long-lease lives, along with its high level of security deposits partly mitigate these weaknesses, S&P said.

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