Fitch rates CapitaLand Trust's proposed unsecured notes of SGD200 mn 'BBB-'

Real estate company expects to use proceeds for repaying debt, general working capital and other business activities

Fitch Ratings has assigned CapitaLand India Trust's (CLINT) proposed unsecured five-year notes of up to 200 million Singapore dollars (SGD) a 'BBB-' long-term rating. The notes will be issued by CapitaLand India Trust Management, the trustee manager of the Singapore-listed real estate company, under its SGD 1.5 billion multi-currency debt issuance programme.

 

The credit rating agency said that the notes are rated at the same level as CLINT's long-term Issuer Default Rating (IDR) because they constitute “direct, unconditional, unsecured, and unsubordinated” obligations of the issuer.

 

The trust has minimal secured debt in its capital structure, which limits subordination risk to