CapitaLand China Trust Secures First-Time BBB Credit Rating from Fitch
CapitaLand China Trust (CLCT) has received its first-ever investment-grade credit rating from Fitch Ratings, securing a Long-Term Issuer Default Rating of ‘BBB’ with a Stable Outlook. The Singapore-listed real estate investment trust has also been assigned a ‘BBB’ senior unsecured rating.
The rating marks a significant development in CLCT’s financing position. It is expected to strengthen the trust’s access to debt capital markets in Singapore and Greater China, while providing greater flexibility in diversifying its funding sources.
Fitch’s assessment reflects the performance of CLCT’s retail portfolio, particularly its shopping malls in Beijing and Guangzhou. These properties have maintained high occupancy levels and recorded growth in tenant sales despite challenging consumer sentiment in China.
The rating agency also recognised the trust’s relationship with its sponsor, CapitaLand Investment Limited (CLI). This association provides access to an established retail tenant network, alongside funding support and relatively low borrowing costs.
Retail portfolio supports credit assessment
CLCT's retail assets remain a key factor behind its credit profile. Fitch expects committed occupancy across the retail portfolio to remain between 97% and 98% during 2026 and 2027.
Rental performance is also expected to improve. Fitch forecasts retail rental reversion to move from negative 3% in 2026 to neutral in 2027, following tenant-mix adjustments and the repositioning of major shopping malls.
The outlook for its business park portfolio is more restrained. Net rental income from these properties is forecast to decline by a low-to-mid-single-digit percentage annually during 2026 and 2027, although the pace of decline is expected to narrow.
Fitch also expects CLCT's net debt-to-EBITDA ratio to remain between 8.5 and 9 times during 2026–2028. During the review period, the ratio of net debt to investment properties is expected to lie in the range of between 35% and 40%.
Commenting on the rating, Gerry Chan, Chief Executive Officer of CapitaLand China Trust Management Limited, said the recognition is a reflection of the resilience of the portfolio, prudent financial management, and good capital allocation.
He added that the rating would further complement funding diversification and galvanize stakeholder confidence whilst the Trust remains committed to maintaining its balance-sheet strength and long-term growth.
CLCT's portfolio comprises eight shopping malls, five business park properties and four logistics park properties across 11 cities in China. Its total property value stood at S$4.3 billion as of 31 December 2025, based on the valuations of its proportionate interests in the portfolio.
DBS Bank Ltd. acted as the sole rating adviser for the transaction.
