Moody's may cut Ascendas REIT

Moody's Investors Service said it placed Ascendas Real Estate Investment Trust's A3 corporate family rating on review for possible downgrade.

The action reflects the company's continuing reliance on uncommitted revolving banking facilities to fund its asset growth and capital expenditure, Moody's said.

While Moody's recognizes A-REIT's leading market position in Singapore's REIT sector and its good relationships with banks, the agency said it believes the continued use of such facilities is a source of weakness, especially as the bank lending environment continues to tighten.

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