S&P Global Ratings affirmed its ratings on Starhill Global REIT at BBB+ and changed the ratings outlook to negative from stable.
The affirmation pertains to the Singapore-based real estate investment trust's issuer credit rating and the issue rating on its guaranteed senior unsecured notes.
S&P attributed the change in the outlook to its expectation that Starhill's leverage ratio will weaken because of an asset-enhancement initiative involving the Starhill Gallery property in Malaysia.
The rating agency also noted the possibility of the REIT being impacted by material delays or cost overruns related to the initiative and lower-than-expected performance of its other assets.
S&P attributed Starhill's rating affirmation to the expectation that the company's funds-from-operations-to-debt ratio will recover after the completion of the asset-enhancement initiative in June 2021. The affirmation also reflects the company's secured occupancy and higher rents on lease renewal.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.