Moody’s has negative rating on S’pore REITs

Moody’s has negative rating on S’pore REITs 

 

 

Moody’s Investors Service has a negative rating outlook for Singapore’s real estate investment trusts over the next 12 to 18 months.

 

Moody’s said in a new report that despite overall sound fundamentals, negative market sentiment and tighter market liquidity have impaired the access of some issuers to the capital markets.

 

Lead author of the report, Kathleen Lee said materially tighter credit conditions are adversely affecting both the availability and price of debt at a time when a number of S-REITs face imminent refinancing needs.

 

She added that depressed unit prices of many trusts have also reduced the attractiveness of equity funding.

 

As a result of these challenges, Moody’s in recent months has downgraded or put on review for downgrade three S-REITs and set outlooks for two others to negative.

 

 

Source: 938Live

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