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Moody's Rating For CapitaCommercial Trust

BackJul 16, 2008

CapitaCommercial Trust's Response:

CapitaCommercial Trust Management Limited, the Manager of CapitaCommercial Trust (CCT), has in place a proactive capital management strategy. This is demonstrated by its ability to secure 100% committed funding of S$1.2 billion to finance 1 George Street in March 2008, four months ahead of its targeted completion, in the midst of the current difficult credit environment. The 1 George Street transaction was successfully completed on 11 July 2008.

In relation to the S$656 million which is due for refinancing next year, the Manager has a number of refinancing options available to it and intends to finalise them well in advance of the existing debt maturity. The Manager is of the view that CCT's current gearing of 37% is a prudent level for the trust.

There is strong organic growth within the CCT's portfolio. Current occupancy is close to 100%. In addition, the full effect of the strong positive rent reversions from leases committed in 2007 and 2008 will progressively pronouncedly come through in the current and subsequent years and further strengthen CCT's financial position.

The higher income could be seen from the strong distribution per unit growth in CCT's forecast for 2008 and projection for 2009 as shown in the forecast and assumptions stated in the Untiholder's Circular dated 9 June 2008. CCT's forecast distribution per unit for 2008 is 10.61 cents, which is 22% higher than the DPU of 8.70 cents delivered in financial year 2007. For 2009, the projected DPU of 12.34 cents is 16.3% above the forecast DPU of 10.61 cents in 2008.

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