Fitch Ratings has assigned a 'BBB-' rating to CapitaLand India Trust (CLINT)'s proposed unsecured notes of SGD200 million. The rating is consistent with CLINT's Long-Term Issuer Default Rating (IDR) of 'BBB-' with a Stable Outlook, which Fitch assigned in July 2024.
Points to note:
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The rating is based on CLINT's high-quality portfolio of Grade A offices in India
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Fitch anticipates CLINT to have strong occupancy levels and positive rental reversions
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EBITDA net leverage is forecasted to peak at 8.5x in 2025 before declining to approximately 7.0x
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The trust's sensitivity to asset developments and acquisitions is highlighted as a counterbalancing factor
This rating action reflects investor faith in CLINT's business model and its capacity to maneuver the Indian real estate sector. The proposed notes are expected to finance CLINT's growth strategy and manage its capital structure.
Sources: Fitch Ratings report, CapitaLand India Trust announcement, March 14, 2025