Ascott Orchard Singapore (Photo: Ascott REIT)

Fitch Ratings has downgraded Ascott REIT’s issuer default rating to 'BBB-' from 'BBB', with a stable outlook.

The downgrade reflects the impact of the coronavirus pandemic on Ascott REIT's credit metrics and a longer recovery path for global travel, hospitality and leisure, said the ratings agency.

“We forecast a slow demand recovery until 2022, when vaccination rates start to rise, and for global travel and lodging fundamentals to recover to pre-pandemic levels only after 2024, although some uncertainty remains”, it added.

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By Shariffa Al-Habshee

Shariffa joined REITsWeek in 2017, and monitors Asia-Pacific REITs for the publication.