Moody’s gives Baa1 to Mapletree notes

Moody's Investors Service said it assigned a Baa1 backed senior unsecured rating to the proposed S$120 million notes issued by Mapletree Commercial Trust Treasury Co. Pte. Ltd., a wholly owned subsidiary of Mapletree Commercial Trust (MCT, Baa1 stable), under its existing medium-term note program that is rated provisional Baa1.

The notes have a coupon of 3.28% and will mature on Sept. 23, 2024.

The rating outlook is stable.

Proceeds will be used to refinance existing borrowings.

Moody’s said the Baa1 issuer and senior unsecured ratings are underpinned by Mapletree’s: (a) Stable and recurring income from its portfolio of good-quality properties, particularly from VivoCity, a shopping mall in Singapore with a diversified tenant profile; and (b) its improved portfolio diversification and earnings growth following the acquisition of Mapletree Business City I (MBC I) in 2016.

"The ratings also reflect MCT's track record of prudent financial management in terms of funding acquisitions with a good balance of debt and equity, as well as proactively addressing its debt maturities," Moody's assistant vice president and analyst Rachel Chua said in a news release.

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