Mapletree Commercial Trust property, ARC, in Singapore (Photo: REITsWeek)Mapletree Commercial Trust property, ARC, in Singapore (Photo: REITsWeek)

Ratings agency Moody's Investors Service has upgraded the issuer rating of Singapore-listed retail REIT and office REIT Mapletree Commercial Trust (MCT) (SGX:N2IU) to Baa1 from Baa2 previously.

Moody's has attributed the ratings upgrade to MCT's improved showing across its portfolio.

"The upgrade reflects an improved and strong operating performance across MCT's portfolio - especially at its largest asset, VivoCity, a shopping mall located at the southern precinct of Singapore - since the trust's listing in 2011", said Jacintha Poh, a Moody's vice president and analyst.

Moody's added that MCT's portfolio, which has an occupancy rate of 98.5% as of 30 September 2014, has seen compounded revenue growth of 8% since March 2011 to March 2014.

Moody has said that it expects VivoCity's performance to remain resilient due to the absence of competing malls in its immediate vicinity.

On top of the issuer ratings, Moody's has also upgraded MCT's senior unsecured debt ratings to Baa1 from Baa2 and the programme rating to (P)Baa1 from (P)Baa2 with an outlook of stable. The agency said that it expects MCT to maintain financial discipline while pursuing growth and keep its credit profile within targeted parameters.

Units of MCT are currently listed on the Singapore Exchange at SGD1.41.

Mapletree Commercial Trust
Mapletree Commercial Trust property, ARC, Singapore

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.