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S&P's downgrade of Sabana Reit withdrawn on trust's request

Sabana cites CIS code amendment for Reits to adopt 45% single-tier leverage limit without credit rating requirement

Published Thu, Jun 23, 2016 · 09:50 PM

Singapore

S&P Global Ratings on Thursday downgraded its long-term corporate credit rating on Sabana Shari'ah Compliant Reit to "BB+" from "BBB-" with stable outlook, only to withdraw all ratings of Sabana Reit upon the Reit's request on the same day.

Explaining the rationale of the downgrade, Standard & Poor's (S&P) said that the Reit's balance sheet has weakened on prolonged difficult industry conditions.

Its base-case expectation is that Sabana Reit's ratio of funds from operations (FFO) to debt will be 7-9 per cent for the next 12 …

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