Moody's may cut Mapletree Logistics

Moody's Investors Service said it placed the Baa1 rating of Mapletree Logistics Trust on review for possible downgrade after reviewing the company's third quarter results of 2007.

Although MapletreeLog's operating performance was in line with the agency's expectations, the rating action is prompted by the fact that the trust's leverage has stayed at more than 50% with annualized total debt-to-EBITDA beyond 10x since the second quarter of 2007.

The agency said there remains uncertainty as to whether the credit metrics can be restored to levels in the near term that support the Baa1 rating. Prevailing weak market conditions and an acquisitive growth strategy could make it unlikely for any quick restoration of the company's financial metrics, Moody's said.

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