Mitsubishi Estate credit rating cut by Moody's to A2

[TOKYO] Mitsubishi Estate Co's credit rating has been lowered by one notch to A2 by Moody's Investors Service, on concern that Japan's largest developer by market value is less likely to reduce debt after announcing plans to increase investment.

Mitsubishi Estate in May said it would spend as much as 900 billion yen (S$11 billion) through 2016 to develop properties in Japan including in Tokyo's Marunouchi district, which commands the highest office rent in the country.

The announcement came at a time of recovery in the property market. Land prices in Tokyo, Osaka and Nagoya - Japan's three largest metropolitan areas - rose for the first time in six years last year spurred by investment, according to a government survey.