Ratings agency Moody’s announced on 9 March that it has withdrawn Cache Logistics Trust's (SGX:K2LU) Baa3 corporate family rating with a stable outlook.
“Moody's has withdrawn the rating for its own business reasons”, said the agency in its announcement.
The withdrawal follows an announcement from the manager of Cache Logistics Trust on the same day stating that it has requested Moody’s Investors Service to withdraw the corporate credit rating on the Singapore-listed industrial REIT. The rating was Baa3 with a stable outlook at the point of withdrawal.
“This follows the amendment in the property fund appendix to adopt a single-tier leverage limit of 45% without the requirement for a credit rating”, said ARA-CWT Trust Management (Cache) Limited, manager of the REIT, in relation to the request for withdrawal.
The manager is understood to be referring to Appendix 6 of the Monetary Authority of Singapore’s Code on Collective Investment Schemes, which stipulates the aggregate leverage limits of property funds.
Units of Cache Logistics Trust are currently listed on the Singapore Exchange at SGD0.845.