Fitch: Ascott Residence, notes BBB

Fitch Ratings said it assigned Ascott Residence Trust a long-term issuer default rating of BBB with a stable outlook.

The agency also assigned a BBB senior unsecured rating to the company and to its S$1 billion multicurrency outstanding medium-term note program.

Fitch said the BBB long-term issuer default rating was driven by Ascott Residence’s strong business risk profile, which is underpinned by its globally diversified portfolio of serviced residence properties. The portfolio has proven to be resilient across economic cycles and is supported by its significant minimum guaranteed rent income under its master leases and management contracts.

The BBB rating on the senior unsecured debt is driven by the agency’s view that the trust's senior unsecured creditors have only a limited risk of legal subordination from its secured creditors, so long as the ratio of unpledged assets to unsecured debt remains higher than 2 times (end-2016: 2.9 times).

The medium-term notes are issued by Ascott REIT MTN Pte. Ltd., which is a subsidiary of Ascott Residence, and are guaranteed by DBS Trustee Ltd. in its capacity as trustee of Ascott Residence.

The notes constitute direct, unconditional, unsubordinated and unsecured obligations of Ascott REIT MTN and the guarantor.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.