Moody’s revises ESR-REIT to stable

Moody's Investors Service said it revised ESR-REIT's outlook to stable from negative and affirmed its Baa3 issuer rating.

At the same time, the agency affirmed the provisional Baa3 senior unsecured rating on the S$750 million debt issuance program issued by RBC Investor Services Trust Singapore Ltd. – a co-issuer with ESR MTN Pte Ltd. – in its capacity as trustee of ESR-REIT. It also affirmed the Baa3 ratings on the senior unsecured notes drawn down from the program.

The outlook for ESR-MTN was revised to stable from negative.

ESR-MTN is a wholly-owned subsidiary of ESR-REIT.

"The change in ESR-REIT's ratings outlook to stable reflects the improvement in the trust's credit profile and capital structure, following its reduction in debt levels through the application of equity proceeds," Moody's assistant vice president and analyst Rachel Chua said in a news release.

"This alleviates ratings pressure driven by a series of debt-funded acquisitions over the last 12 months."

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