Standard & Poor’s Ratings Services recently assigned its ‘BBB-’ corporate credit rating to AmanahRaya Real Estate Investment Trust (AmanahRaya), a real estate investment trust (REIT) in Malaysia.

This stable outlook on AmanahRaya reflects the REIT’s stable rental income, long lease maturity profile, and a high level of tenant security deposits. Other factors included is the the Malaysian government’s support and equity stake in AmanahRaya and still the close links to KWB, a Malaysian Common Fund, which has been providing a pool of quality properties for AmanahRaya to acquire and will continue to do so.

According to S&P: AmanahRaya’s debt-to-capital ratio was 49.7% as at September 2006 and annualised 2007 FFO to debt is expected to be 7%. Also the Reit is expected to fund its new properties substantially by equity and thus, debt to total capital is expected to improve to 40%-45% over a year, from 49.7% as at September 2006. In the medium term, its target debt-to-total-capital ratio is expected to further improve to 30%-40%,”

(refer earlier article on AmanahRaya’s Reit)

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