Moody's changes Ascott Residence view to negative

Moody's Investors Service said it changed the outlook for Ascott Residence Trust to negative from stable. The agency also affirmed the Baa3 issuer rating of Ascott Residence Trust and its back senior unsecured notes.

"The change in outlook to negative reflects our expectation that the operating performance of Ascott REIT's hospitality properties could weaken as international travel is being curtailed to varying degrees around the world," said Junling Tan, a Moody's analyst, in a press release.

"While Ascott REIT's credit metrics have adequate capacity under its Baa3 rating to withstand an up to 20% decline in revenue per available unit, the extent of the impact caused by the virus outbreak remains uncertain," added Tan.

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