Moody’s rates Ascott program Baa3

Moody's Investors Service said it affirmed Ascott Residence Trust's (Ascott REIT) Baa3 issuer rating and assigned a provisional Baa3 rating to its S$1 billion multicurrency medium-term securities program of Ascott REIT MTN Pte. Ltd.

The program was established by Ascott REIT through its wholly owned subsidiary – Ascott REIT MTN – and is unconditionally and irrevocably guaranteed by DBS Trustee Ltd., in its capacity as the trustee of Ascott REIT.

The outlook is stable.

Ascott REIT's Baa3 issuer rating reflects its established market position, reinforced by an enlarged portfolio of assets that is diversified across Asia-Pacific, Europe and America. This partially mitigates the operational volatility inherent in the short leases of hospitality assets.

In addition, the rating takes into account the support of Ascott REIT's strong sponsor, Ascott Ltd., where the trust can leverage on its sponsor's expertise, track record and strong network of relationship banks.

The rating also reflects the trust's stable and healthy financial profile, supported by a track record of prudent financial management, Moody’s said.

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