K-REIT – BT

Moody's affirms K-REIT's Baa3 corporate family rating

Moody's Investors Service on Monday affirmed K-REIT Asia's Baa3 corporate family rating.

The affirmation follows K-REIT's announcement that it will acquire the remaining 12.39 per cent stake in Ocean Financial Centre (OFC) from a private investor trust for $285.7 million.

"While K-REIT's leverage will increase as a result of its efforts to expand its portfolio, the outlook for the rating remains positive because we expect the company to bring its debt-to-total-assets to below 40 per cent in the near term," said analyst Jacintha Poh.

The company will fund the acquisition through a mix of 24 per cent equity and 76 per cent debt. K-REIT will raise $70 million through a private placement of 60 million new shares at $1.17 per share. The remaining $154 million will be funded by approximately two-year term loans.