Singapore’s first Shari’ah compliant industrial REIT, Sabana (SGX:M1GU) has received a ‘BBB‐‘ long‐term corporate credit rating and ‘axA-‘ long-term ASEAN regional scale rating with a
stable outlook from ratings agency Standard & Poor’s.

A rating of BBB- is indicated in Standard & Poor’s credit rating definitions as “lowest investment grade by market participants”. The rating generally suggests that the REIT has adequate capacity to meet its financial obligations but is subject to adverse economic conditions.

In its report dated 11 June, Standard & Poor’s notes that the rating of stable outlook accorded to Sabana is based on the ratings agency’s expectation that the REIT will satisfactorily manage its peak lease expiry in late 2015 and maintain its business and financial risk profiles, with gradual improvement in occupancy rates, over the next 12-18 months.

Units of Sabana REIT closed the trading day unchanged from the previous trading session at SGD1.05.