19.07.2016, 13:58
Fitch Affirms CDL Hospitality Trusts
OREANDA-NEWS. Fitch Ratings has affirmed CDL Hospitality Trusts' (CDL) Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BBB-' with a Stable Outlook.
Limited Rating Headroom: The affirmation of CDL's IDR is supported by its adequate financial profile, with FFO fixed-charge cover of 5.7x at end-2015, net debt / investment property assets at 35%, and FFO-adjusted net leverage of 6.5x. We expect CDL's financial profile to remain healthy over the next 12-18 months. However CDL's financial profile has weakened over the last 18 months due to challenging conditions in Singapore and the Maldives, which has reduced CDL's rating headroom. We expect CDL's financial profile to remain under pressure in 2016 due to challenges across some of its markets, but expect it to remain in line with a 'BBB-' rating.
Limited Rating Headroom: The affirmation of CDL's IDR is supported by its adequate financial profile, with FFO fixed-charge cover of 5.7x at end-2015, net debt / investment property assets at 35%, and FFO-adjusted net leverage of 6.5x. We expect CDL's financial profile to remain healthy over the next 12-18 months. However CDL's financial profile has weakened over the last 18 months due to challenging conditions in Singapore and the Maldives, which has reduced CDL's rating headroom. We expect CDL's financial profile to remain under pressure in 2016 due to challenges across some of its markets, but expect it to remain in line with a 'BBB-' rating.
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