Mapletree Commercial Trust's VivoCity. (Photo: REITsWeek)

Moody’s Investors Service announced on 18 August that it has assigned a Baa1 senior unsecured rating to the SGD175 million notes issued by Mapletree Commercial Trust.

The REIT executed a pricing supplement to issue SGD175 million in principal amount of 3.11% fixed rate notes due 2026, under its SGD1 billion multi-currency medium term note (MTN) programme, on the same day.

The MTN facility was established in August 2012 and guaranteed by DBS as trustee of the Singapore-listed retail and office REIT.

In explaining the rationale of the rating, Moody’s pointed to Mapletree Commercial Trust’s property portfolio and diverse base of good-quality tenants, and track record in maintaining healthy credit metrics as supporting factors.

“The trust's ratings also take into account the support of its financially-strong sponsor, Mapletree Investments Pte Ltd”, said Moody’s in its statement.

“The rating outlook is stable, reflecting our expectation of continued predictable cash generation from [Mapletree Commercial Trust’s] current portfolio, driven by steady occupancy levels”, said Moody’s.

Proceeds from the issue of the notes will be deployed towards refinancing existing borrowings of the REIT.

Units of Mapletree Commercial Trust finished its trading day about 0.3% lower from its previous close on the Singapore Exchange to end at SGD1.535.

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.