OREANDA-NEWS. Fitch Ratings has affirmed Far East Hospitality Trust's (FEHT) 'BBB-' Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs). The Outlook is Stable.

Healthy Financial Profile: The affirmation of FEHT's IDRs is supported by the company's healthy financial profile, despite net property income contracting by 6% in 2015. FFO fixed-charge cover also declined to 5.9x in 2015, from 6.6x in 2014, but remains above the 4x threshold below which we may consider negative rating action. FEHT's net debt/investment property value remained low at 32% and its assets remain unencumbered, providing strong access to domestic credit markets. This is reflected in the company's favourable borrowing cost of 2.6% at end-1Q16.