Moody's: Suntec REIT view negative

Moody's Investors Service said it revised Suntec REIT's Baa1 rating outlook to negative from stable.

The negative outlook reflects the issuer's near-term refinancing risks given challenging credit markets, Kathleen Lee, Moody's analyst, said in a written statement.

"Suntec REIT has 40% of its total debt, mostly related to the bridge financing for its ORQ acquisition, falling due in the coming eight months," adds Lee. "A third of its short-term debt is due to mature at end-April 2008, but committed long-term financing to term out the debt has yet to be finalized."

The REIT benefits from high asset quality and the fact that its operating performance is in line with expectations, Lee said.

"However, the company's ratings will come under further pressure if it fails to secure committed and unconditional long-term financing by mid-March 2008 for the purposes of taking out the debt due in April," Lee said.

© 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.