Parkway Life REIT says its issuer default rating is downgraded

Mainboard-listed Parkway Life Real Estate Investment Trust (REIT) said Friday that its issuer default rating was downgraded.

Ratings agency Fitch cut Parkway Life REIT’s rating to ‘BBB’ from ‘BBB+’, giving it a stable outlook.

Fitch said the REIT could be impacted by its sponsor, Parkway Holdings, the owner of Parkway Hospital Singapore.

Parkway Hospital is the operator of the REIT’s three hospitals here, and the REIT could be affected by the extra debt incurred for Parkway’s Novena Hospital project.

Fitch noted that the Novena Hospital will not be operational nor will it generate income for Parkway Holdings until mid-2011.

Parkway Life REIT last traded at 95 cents, down two-and-a-half cents.

Source : Channel NewsAsia – 12 Jun 2009

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