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Standard & Poor’s (NYSE:MHP) Ratings Services said it has assigned a ‘BBB+’ corporate credit rating with a stable outlook to property developer CapitaLand Ltd reflecting its growing position as an owner, manager, and developer of real estate in Singapore and the Asia-Pacific region, some implicit government ownership support and its large and diversified asset and earnings base.
The ratings agency also assigned a ‘BBB’ rating to the company’s 1.3 bln sgd 3.125 pct convertible bonds due 2018.
CapitaLand’s credit quality benefits from some element of implicit support from Temasek Holdings Pte Ltd, which holds a 40 pct stake but does not offer any explicit support, S&P said.
The ratings agency said the stable outlook reflects CapitaLand’s established market position in real estate sectors in Singapore and Australia, along with stable income from its property investment portfolio including real estate investment trusts (REITs) and increasingly diversifying asset and revenue sources.
CapitaLand is progressively selling real estate assets to use the capital in higher-yielding, but less stable and predictable operations such as real estate development and overseas real estate markets such as China and Vietnam. However the management has a successful track record of executing on its strategy, which supports the rating, said S&P.