Moody's affirms Ascott

Moody's Investors Service said it affirmed Ascott Residence Trust's Baa3 corporate family rating.

The outlook remains negative.

This affirmation follows news that the trust has entered into conditional sale and purchase agreements with subsidiaries of the Ascott Ltd. for the trust's acquisition of two Asian and 26 European properties, Moody's said.

The acquisition is priced at S$1.39 billion and will significantly increase its portfolio size by 79% to S$2.8 billion, enhancing portfolio diversity with expanded geographic coverage and asset multiplicity, the agency said.

The transaction, when completed, would not materially increase the company's debt leverage in the medium term as it is only about 40% debt-funded, Moody's said.

The agency said it expects the trust's debt-to-EBITDA ratio to stay about 7 to 8 times after completion.

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