Saizen Reit: its corporate family rating is up for a possible upgrade to positive by Moody's, following its plans to repay a loan that went into maturity default in Nov' 09 after the collapse of Japan’s commercial mortgage-backed securities (CMBS) market in ‘08. Moody's last revised Saizen's Caa1 corporate family rating in Jun '10 from negative to stable...
Moody's notes the repayment plan is “a positive action in resolving the defaulted CMBS loan of YK Shintoku", and estimates Saizen has unencumbered assets of ~¥11.5b available to repay the YK Shintoku loan and other maturing debts...
Meanwhile Saizen believes the ¥4.2b (S$62m) outstanding loan bal under its YK Shintoku portfolio can be repaid by the end of May '11, while the next material debt of ¥5.7b would mature in ‘13.
Technically stock has been range bound btwn 12.5-18cts for the past 18mths. A rating upgrade could be a catalyst for Saizen share price to test the ceiling of this trading range.
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