SINGAPORE (June 18): On June 17, Moody’s Investors Service announced that it has withdrawn ESR-REIT’s Baa3 issuer rating, (P)Baa3 senior unsecured rating on its $750 million Multicurrency Debt Issuance Programme and the Baa3 ratings on the senior unsecured notes drawn down from the Programme and its stable outlook “for its own business reasons”. The outlook at the time of withdrawal was "stable".

The withdrawal was made post the redemptions of the ESR-REIT’s $30.0 million 4.10% Series 002 Notes on April 29, 2020 and the $130.0 million 3.95% Series 004 Notes on May 21, 2020 respectively; both issued under the Programme. As at June 17 this year, ESR-REIT’s remaining outstanding $50.0 million 3.95% Series 005 Notes issued under the Programme will mature in 2023. The $50.0 million Series 005 Notes comprise 4.1% of ESR-REIT’s total debt

“We requested to withdraw Moody’s rating in July 2017. This is due to the aggregate leverage limit being changed from 35% (without credit rating) and 60% (with credit rating), to 45%,” ESR-REIT’s manager explains. “Since then, we have not paid Moody’s for credit rating and have not engaged with them on discussions. Moody’s has continued to rate us, though unsolicited, given that we had a substantial amount of bonds outstanding. Now that there is only $50.0 million bonds remaining outstanding, Moody’s has decided to withdraw the ratings,”, ESR-REIT’s manager says.