S&P Global ratings has withdrawn its 'BB' long-term corporate credit rating on Singapore-based IREIT Global, after the REIT requested for the rescind.

S&P has previously affirmed the ‘BB’ rating with a stable outlook, while also affirmed the 'axBBB-' long-term ASEAN regional scale rating on the REIT.

“The affirmed ratings at the time of the withdrawal reflected IREIT's relatively small scale and concentrated lease expiry profile compared with rated peers”, said S&P in a statement on the ratings.

“These risks are balanced by a stable portfolio of quality assets with high occupancy rates and strong tenants”, said the firm, adding that the REIT’s business and financial performance were in line with its expectations.

S&P also expects the REIT’s gearing to remain at about 40%, which allows limited financial flexibility given the 45% limit as per Monetary Authority of Singapore (MAS) regulations.

“We do not view the recent change in ownership and control as having a significant effect on the business or financial prospects”, said S&P, in reference to the Tikehau Investment Management’s acquisition of an 80% stake in the REIT’s manager.

Tikehau has also said that it will expand the REIT’s investment mandate beyond German office properties.

“In addition, any risks due to property type or geographical location are likely to be offset by increases in scale and diversity”, said S&P, adding that it expects Tikehau’s network in Europe to be beneficial for potential acquisition deals.

IREIT Global finished the trading day about 1.4% higher from its previous close on the Singapore Exchange at SGD0.73.