Feb 29 -
-- Despite a loss on a property sale that will constrain the J-REIT's net income for the fiscal term ending Feb. 29, 2012, we expect this to have a limited impact on the J-REIT's credit standing, given our view that the decline in net income will be temporary.
-- Newly acquired properties buttress the earnings of JRF's portfolio, which generates generally stable cash flow, despite weak profitability at some retail properties. The performance of these newly acquired properties also underpins JRF's continued weak financial standing, although we expect the J-REIT to take a few years to improve its financial measures, such as its debt and interest coverage ratios.
-- JRF has the largest asset portfolio among listed J-REITs focusing on retail properties.
-- We have affirmed our 'A' long-term and 'A-1' short-term ratings on JRF. The outlook remains stable.
Standard & Poor's Ratings Services today said that it has affirmed its 'A' long-term corporate credit and debt ratings and its 'A-1' short-term credit rating on Japan Retail Fund Investment Corp. (JRF). The outlook on the long-term corporate credit rating remains stable.