Moody's: No change for Suntec

Moody's Investors Service said that it does not expect any impact on the Baa1 corporate family rating, Baa2 senior unsecured rating or on the negative outlook of Suntec Real Estate Investment Trust.

This follows news that Suntec concluded a private placement for 128.5 million units at S$1.19 per unit, Moody's said.

The majority of the proceeds of about S$153 million will be used to reduce its existing debt.

The private placement is consistent with the opinion that Suntec is able to access the equity markets to contain its debt leverage, Moody's said.

However, the private placement will only modestly improve Suntec's leverage to a debt-to-EBITDA ratio of 8x, which is weak for the Baa1 rating level, the agency said.

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