Fitch Ratings has affirmed Mapletree Logistics Trust's (SGX:M44U) Long-Term Issuer Default Rating (IDR) at 'BBB+' with a 'stable' outlook, according to a Friday statement.
The ratings agency has also affirmed the 'BBB+' rating on the unsecured notes issued by the company's wholly-owned subsidiary, MapletreeLog Treasury Company, and affirmed the 'BBB-' rating on the company's perpetual securities.
The ratings affirmation is driven by the company's high-quality, geographically diversified portfolio of logistics assets and its large scale.
Fitch noted rating headroom remains limited due to persistently high EBITDA net leverage, with significant deleveraging unlikely as the trust continues portfolio rejuvenation. However, its geographic diversification should support stable cash flows and positive rent reversions despite weakness in China.
The company's shares were down nearly 1% in recent trade.