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Fitch Assigns ‘BBB-‘ to Ascott REIT’s Proposed Notes

April 12, 2022 – Fitch Ratings has assigned a ‘BBB-‘ long-term rating to Ascott Real Estate Investment Trust’s (BBB-/Stable) proposed unsecured, unsubordinated, Singapore-dollar notes. 

The notes are rated in-line with the trust’s ‘BBB-‘ Long-Term Issuer Default Rating (IDR) as they constitute the trust’s direct unsecured, unconditional and unsubordinated obligations. The notes are issued by Ascott REIT MTN Pte. Ltd., and guaranteed by DBS Trustee Limited in its capacity as Ascott REIT’s trustee.

Ascott REIT’s Long-Term IDR and Stable Outlook reflect the growing diversification of its property portfolio towards long-stay assets, such as student accommodation and rental housing, in the medium term. This will reduce its exposure to a slow recovery in global travel demand and improve its business-risk profile.