Fitch Ratings has placed a BBB+ long-term rating on MapletreeLog Treasury's proposed SG$50 million seven-year unsecured notes, according to a Wednesday release.
The issuer is a subsidiary of Singapore-listed Mapletree Logistics Trust (SGX:M44U), with the notes' rating aligning with the parent's long-term issuer default rating.
HSBC Institutional Trust Services (Singapore) will guarantee the notes as trustee of Mapletree Logistics Trust.
The parent's rating balances its wide scale and high-quality, geographically diversified portfolio of logistics assets with increased EBITDA net leverage, Fitch said.
The trust's varied portfolio should anchor positive portfolio rent reversions and stable cash flow even with a weak China segment, the rating agency said.
Acquisitions should slow down in the next three to four years even with the trust's continued push for a portfolio refresh, Fitch said.
Significant changes in the parent's EBITDA net leverage, net debt to investment property value ratio, and operating conditions including weaker logistics sector fundamentals could trigger future rating actions, according to the rating agency.
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