REPL::General Announcement::CCT downgraded to 'BBB+' on increasing leverage following portfolio enhancement; Outlook Stable

Issuer & Securities

Issuer/ Manager
CAPITALAND COMMERCIAL TRUST MANAGEMENT LIMITED
Securities
CAPITALAND COMMERCIAL TRUST - SG1P32918333 - C61U
Stapled Security
No

Announcement Details

Announcement Title
General Announcement
Date &Time of Broadcast
22-Sep-2017 22:25:52
Status
Replacement
Announcement Sub Title
CCT downgraded to 'BBB+' on increasing leverage following portfolio enhancement; Outlook Stable
Announcement Reference
SG170922OTHRIWW5
Submitted By (Co./ Ind. Name)
Toh Su Jin Jason
Designation
Company Secretary, CapitaLand Commercial Trust Management Limited
Description (Please provide a detailed description of the event in the box below)
S&P Global Ratings has lowered its long-term corporate credit rating on CapitaLand Commercial Trust to 'BBB+' from 'A-' with a Stable Outlook.

S&P's downgrade is based on the likelihood that CCT's leverage will increase over the next 24 months primarily due to debt funding for Asia Square Tower 2 (AST2). As a result, CCT's ratio of funds from operations (FFO) to debt and ratio of debt to total assets will deteriorate. It is to be noted, however, that S&P believes that the acquisition will improve CCT's portfolio quality over the next 3-4 years. The agency also believes that the commercial office market has bottomed out and will progressively improve from 2018 onwards. Given that CCT has demonstrated a consistent record of high occupancies and stable rentals throughout property cycles, S&P believes that AST2 together with CCT's other high quality and well-located assets are well positioned to benefit from improving market fundamentals.

Please see attached press release by S&P Global Ratings.

Attachments

Related Announcements

Related Announcements

22/09/2017 21:16:27