Soilbuild Business Space REIT has recently issued SGD100 million 3.60% fixed rate notes due 2021. Moody’s has given the notes a definitive rating of
Baa3.
Honestly, when I saw the “Baa3” rating, I did not understand what it means. I thought it must be something good. It is very common for REITS to issue notes for refinancing when its debt is due and often I see crediting rating agencies such as Moody’s give a rating for the notes issued.
After some research, I found the below scale used by Moody’s on its website. It is known as
Global Long Term Rating Scale.
| Credit Rating |
Description |
| Aaa |
Obligations rated Aaa are judged to be of the highest quality, subject to the lowest level of credit risk. |
| Aa |
Obligations rated Aa are judged to be of high quality and are subject to very low credit risk. |
| A |
Obligations rated A are judged ... |
...
