SGReit's new leases bring reassurances, but credit outlook takes a hit

Singapore

NEW long-term master leases announced by Starhill Global Reit (SGReit) for two of its Malaysian malls have given reassurance to equity analysts, but the development was seen as a negative from a creditworthiness perspective.

S&P Global Ratings has revised its ratings outlook on SGReit to "negative" from "stable" while reaffirming its "BBB+" issuer credit rating, on the expectation that the trust's financial leverage will be stretched over the next 18 to 24 months.