REITS: \'Please weigh the risks!\'

haha, maybe pple are waiting for buy one get one free, thinking that prices will go even lower. Hopefully by that time, all rush in trying to get a piece, and all sold out! :woohoo:

it may happen tough..this is a real crazy market and you have a chance now in a life time to be a mini WB....

CapitaMall Trust and its family of REITs have been downgraded by credit rating agencies. Another blow to the local REIT scene.

Published March 4, 2009 Moody\'s lowers ratings for CCT, outlook negative MOODY\'S Investors Service yesterday downgraded CapitaCommercial Trust\'s (CCT\'s) corporate family rating to Baa2 from Baa1 and senior unsecured ratings to Baa3 from Baa2. And the outlook for both ratings is negative. \'The downgrade reflects the company\'s strained credit metrics, particularly debt to EBITDA leverage and EBITDA/interest coverage, which are in excess of 10 times and around 2.5 times respectively,\' said Moody\'s senior analyst Kathleen Lee. \'These metrics are anticipated to weaken further to the extent that they would not be consistent with a Baa1-rated Reit,\' she said. \'Furthermore, Moody\'s expects it will be difficult for CCT to improve these metrics over the intermediate term, as its operations will likely continue to be impacted by the slowing economy and constrained capital markets, which could be further exacerbated by upcoming new office completions from 2009 onwards.\' Moody\'s noted that CCT has substantially addressed short-term refinancing requirements relating to its $580 million CMBS (commercial mortgage-backed securities) notes due March 16. When completed, the refinancing will result in improved financial flexibility to the extent that CCT\'s encumbered assets will fall from 92 per cent to 59 per cent as a proportion of total assets. Moody\'s said the Baa2 rating reflects CCT\'s leading position as Singapore\'s largest commercial real estate investment trust (Reit) with a portfolio of fully- owned high-quality assets supported by solid occupancy, high-quality tenants and a well-spread lease expiry profile. It also reflects CCT\'s relatively good access to bank markets, leveraging on the support of its established sponsor CapitaLand. The outlook could return to stable if CCT is able to deleverage while successfully navigating the current economic downturn so that its EBITDA/interest coverage improves to three times and debt/EBITDA drops below seven times on a sustained basis, Moody\'s said. Moody\'s previous rating action on CCT was taken on Dec 23 last year, when its Baa1 corporate family rating was placed on review for possible downgrade.

Published March 4, 2009 S&P cuts CapitaLand\'s long-term outlook Unsolicited rating is misleading without our input: developer STANDARD & Poor\'s Rating Services yesterday revised its outlook on the BBB+ long-term unsolicited corporate credit rating on property giant CapitaLand to negative from stable. Outlook negative: S&P says Capitaland will continue to face earnings pressure \'At the same time, the rating on CapitaLand was affirmed before being withdrawn,\' S&P said in a release. S&P said that without full interaction of the company in the rating process, it is no longer able to provide an informed credit opinion based on publicly available information. When contacted, a CapitaLand spokesman said: \'There is neither merit nor basis for us to comment. This kind of unsolicited rating is highly undesirable and misleading when it is done without the company\'s input.\' In its release, S&P said: \'Under the current volatile environment, a comprehensive understanding of the company\'s strategic and commercial response to the slowdown in the residential and commercial property business in its core markets is an important credit consideration.\' It added that its negative outlook reflects its opinion that \'CapitaLand\'s profitability will continue to face pressure as a result of lower revenues from residential development projects in its core markets, as well as the negative outlook in general for commercial properties in the region\'. S&P has also affirmed its BBB unsolicited rating on three series of convertible bonds issued by CapitaLand - the $430 million, 2.10 per cent bonds due 2016; $1.0 billion, 2.95 per cent bonds due 2022; and the $1.3 billion, 3.125 per cent bonds due 2018. \'Following the affirmation, the ratings on the convertible bonds have also been withdrawn,\' S&P said. Last month, CapitaLand said fourth-quarter net earnings fell 88.4 per cent to $77.96 million, while full-year 2008 net profit slipped 54.3 per cent to $1.26 billion. Return on equity fell from 31.9 per cent in 2007 to 12.2 per cent last year. Yesterday, the stock rose 5 cents to close at $1.85. Capitaland is trying to defend itself... Whack the credit agencies man!