S&P Global Ratings downgraded Starhill Global REIT's long-term issuer credit rating to BBB from BBB+, with a stable outlook.
The rating agency said Aug. 29 that it downgraded the rating as Starhill Global REIT's weaker operating performance and rent reversions will keep the company's cash flow adequacy ratios below Ratings' downgrade trigger over the next 24 months.
Ratings expects Starhill Global REIT's ratio of funds from operations to debt to decline to 7.6% to 7.8% through fiscal 2021, which is below the rating agency's downgrade trigger of 8%.
The stable outlook on Starhill Global REIT reflects Ratings' view that the company's cash flow adequacy ratios will remain stable over the next 24 months, given the good quality and location of its assets and sound occupancy. The outlook also reflects the expectation that the REIT will not fund further material asset enhancement initiatives or acquisitions with debt.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings. The original S&P Global Ratings documents referred to in this news brief can be found here.
