Fitch rates TREIT bonds A-(tha)

Fitch Ratings said it assigned a national long-term rating to Ticon Freehold and Leasehold Real Estate Investment Trust's (TREIT) new senior unsecured bonds at A-(tha).

The agency also said it affirmed TREIT's A-(tha) national long-term rating.

The outlook is stable.

The bonds, totaling up to 1.47 billion in Thai baht, will have maturities as long as 2026.

The proceeds will be used to acquire additional properties, Fitch said.

The company has said that this entirely debt-funded investment is a one-time occurrence and its medium-term financing policy still aims to maintain its LTV at no more than 30%, the agency said.

Fitch also said it expects the company to maintain sound asset-liability matching.

But the agency also said it expects global and local economic activity to remain sluggish, suppressing demand for industrial properties in Thailand and constraining the company’s ability to raise lease rates over the next 12 to 18 months.

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