Asia-Pacific REITs can weather economic shock: S&P

SINGAPORE (June 15): An economic shock is unlikely to shake Asia-Pacific REITs’ credit foundations, says Standard & Poor (S&P) in its sector review dated Monday.

In the event of a downturn, the rating agency believes that a large number of rated REITs will still be able to debt fund growth opportunities and weather another downturn akin to the global financial crisis of 2008-2009 as they have already incorporated rating buffers into their financial profiles.

In the near term, S&P forecasts that rated REITs will continue maintain moderately conservative financial risk metrics that provide a large rating buffer to withstand debt-funded growth and economic shocks.

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