DJ MARKET TALK: Suntec REIT May Slip; Moody's Outlook Negative
0059 GMT [Dow Jones] Suntec REIT (T82U.SG) may slip after Moody's rating agency changed outlook to negative from stable. Moody's says, "the negative outlook change reflects Moody's view that Suntec is faced with considerable medium-term uncertainties due to the expected continued weakening of the Singapore economy and office property market." Adds reduced tenant demand, moderating rents, declining asset values also a factor. Rating agency also concerned that REIT's liquidity profile depends on successful refinancing of sizable debts maturing Dec. 2009, says refinancing likely more challenging in light of weak financial markets, risk aversion among lenders. Pre-open order book quotes show selling interest down to S$0.575, buying interest heaviest at S$0.58; shares closed flat at S$0.595 yesterday. (KIG)
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