(The following was released by the rating agency)
HONG KONG, December 19 (Fitch) Fitch Ratings says that the latest property substitution within the portfolio backing Emerald Assets Limited Series P1-AAA-002 (Emerald) will not result in a withdrawal or downgrade of the 'AAAsf" rating of Emerald's floating-rate notes.
In this latest substitution, Emerald has released Techplace II from the security portfolio, and added three new properties, namely Nan Wah Building, Corporation Place and 5 Tai Seng Drive Property.
As of end-March 2012, the total valuation of the three new properties was SGD156.88m and of Techplace II was SGD162.22m. The three new properties are already owned by the borrower, Ascendas Real Estate Investment Trust (A-REIT). Fitch estimates that the loan-to-value ratio of the collateral post substitution is 26.7% based on the March 2012 valuation, compared with 26.6% previously. Fitch affirmed Emerald's notes at 'AAAsf' with Stable Outlook in July 2012. Since then, the portfolio has continued to perform within the agency's expectations, with a weighted average occupancy rate above 89%.