Kim Eng Securities downgrades Cityspring Infrastructure Trust (A7RU.SG) to Sell from Hold, cuts target price to $0.52 from $0.62 on prospect of lower distribution payouts, dilution risks.

Notes Cityspring setting aside A$20 million ($25.4 million) before January 2011 in escrow account for its Basslink asset in bid to avoid credit rating downgrade for Basslink’s bonds; “the bonds, totalling A$866 million, face a possible rating downgrade that will trigger a cash lock-up at Basslink and affect CitySpring’s distribution policy.”