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Moody's cuts Suntec REIT
Moody's Investors Service said it downgraded Suntec Real Estate Investment Trust's corporate family rating to Baa2 from Baa1 and the senior unsecured ratings to Baa3 from Baa2.
The outlook is stable.
This completes the review for possible downgrade that began in October when Suntec announced its intention to acquire a one-third stake in Marina Bay Financial Centre Phase 1 for S$1.5 billion, Moody's said.
The downgrade reflects the substantially debt-funded acquisition, which will weaken Suntec's financial profile to levels more appropriately positioned at Baa2, the agency said.
But Moody's said it recognizes that the transaction has long-term strategic benefits and provides Suntec with a larger exposure to grade A properties in Singapore.
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