Ratings agency Moody’s Investor Services announced on 16 November that it has given a first-time issuer rating of Baa3 to Singapore-listed industrial REIT, Cambridge Industrial Trust (SGX:J91U).

A provisional rating of (P)Baa3 has also been issued to the REIT’s SGD500 million multicurrency medium term note programme while a definitive Baa3 rating was given to all of the REIT’s three outstanding series of senior unsecured notes totaling SGD315 million. The outlook on all ratings is stable.

"Cambridge Industrial Trust’s Baa3 ratings are underpinned by its diversified portfolio of well-located industrial assets in Singapore, which provides the trust with income diversification across industrial sub-segments and tenant base, as well as its good operating track record of maintaining stable and resilient earnings," said Moody’s in a press release on the ratings citing the company’s analyst, Rachel Chua.

“Apart from a diversified portfolio across five industrial sub-segments, the trust also faces minimal tenant concentration risk as no single tenant accounts for more than 7% of monthly rental income”, said the agency.

“Moreover, Cambridge Industrial Trust’s earnings have grown substantially since its listing in 2006, largely driven by portfolio growth through yield-accretive asset acquisitions as well as stable organic growth supported by positive rental reversions and asset enhancement initiatives”, it added.

Units of the REIT are currently listed on the Singapore Exchange at SGD0.605.