Moody’s changes CapitaLand to negative

Moody's Investors Service said it affirmed CapitaLand Commercial Trust's (CCT) A3 issuer rating.

The agency also affirmed the A3 senior unsecured debt ratings of CCT MTN Pte. Ltd., and the provisional A3 rating of its senior unsecured medium-term note program.

The outlook on all ratings was changed to negative from stable.

Moody’s said the change in outlook follows CapitaLand’s announcement May 23 that it will acquire 60% of a special purpose sub-trust, MSO Trust (unrated), which owns an office building, CapitaGreen, in Singapore (Aaa stable).

"The change in outlook to negative reflects the likely increase in CCT's debt leverage following the proposed acquisition of CapitaGreen, which in turn will the reduce headroom within its A3 ratings," Moody's vice president and senior analyst Jacintha Poh said in a news release.

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