Moody's concluded its review on Frasers Centrepoint Trust by confirming its Baa1 issuer rating, with a stable outlook.
The review was initiated in March after Frasers agreed to acquire an approximately 17.13% stake in PGIM Real Estate Asia Retail Fund Ltd.
The rating confirmation follows Frasers' deal to buy a 33.33% stake in the Waterway Point property in Singapore from Frasers Property Ltd. and to carry out an equity fundraising of at least S$377.4 million.
The confirmation reflects the rating agency's expectation that Frasers' credit metrics will improve following the equity issuance to partially fund the acquisitions.
Moody's expects the two acquisitions to improve Frasers' earnings resiliency, and further diversify its earnings and geographies.
The stable outlook reflects the rating agency's expectation that Frasers will continue to deliver strong operating results and maintain its strong financial profile.
As of May 27, US$1 was equivalent to S$1.38.