Sabana Reit's manager clarifies reports on rating withdrawal

Singapore

SABANA Shari'ah Compliant Industrial Reit's manager on Friday clarified that it had already decided against continuing with any further credit rating, prior to S&P Global Ratings' decision to lower Sabana Reit's long-term corporate credit rating from "BBB-" to "BB+" with a stable outlook.

This was to "avoid incurring unnecessary costs" following a recent amendment to the Code on Collective Investment Schemes - which now allows real estate investment trusts to adopt a single-tier leverage limit of 45 per cent, without the need for a credit rating.