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Moody’s affirms CCT’s Baa2 ratings; outlook negative

Singapore, May 26, 2009 -- Moody's Investors Service has today affirmed
CapitaCommerical Trust's (CCT) Baa2 corporate family and Baa3 senior
unsecured debt ratings. The outlook on the ratings is negative.

This follows CCT's announcement that it is to launch a fully-underwritten
1-for-1 rights issue to raise approximately SGD828.4 million, and which
is scheduled to be completed in early July 2009. The proceeds are
expected to go towards debt retirement.

"The equity raising, if completed, is expected to materially improve
CCT's credit metrics to the extent that its Debt/EBITDA leverage ratio
falls to 7x - 8x (from 10x - 11x) and its EBITDA/Interest coverage
increases to 2.6x -- 2.9x range (from 2.0x to 2.2x). These metrics are
appropriate for the Baa2 corporate family rating," says Kathleen Lee, a
Moody's VP/Senior Analyst. 

"In addition, the equity raising will also enhance CCT's financial
flexibility, as the proceeds will address most of its 2010 refinancing
requirements. Meanwhile, the tight headroom of its Loan--to-Value and
EBITDA/Interest financial covenants in its banking facilities will also
be vastly improved," adds Lee, also Moody's lead analyst for the trust.

As a result of these enhancements, Moody's expects to revise the ratings
outlook to stable upon completion of the capital raising. Moody's remains
cautious of the weakness in CCT's operating environment, given the
deepening of the recession in Singapore and strong upcoming new office
completions from 2009 onwards. However, the stable outlook is underpinned
by the fact that the equity offerings would provide CCT with a cushion
against a potential asset devaluation of up to 35% (after a 10%
devaluation in 2Q09) before pressure on the ratings emerges.

The upward rating pressure is unlikely to occur over the next 12 to 18
months given the challenging operating environment.

Downward rating pressure would develop should the REIT's operating
performance disappoint, with EBITDA/Interest coverage staying below 2.5x
and Debt to EBITDA rising above 8x on a consistent basis.

The previous rating action with regard to CCT was taken on 3 March 2009
when the trust's corporate family rating was downgraded to Baa2 with a
negative outlook.
The principal methodology used in rating CCT was the Rating Methodology
for REITs and Other Commercial Property Firms, which can be found at
www.moodys.com in the Credit Policy & Methodologies directory, in the
Ratings Methodologies subdirectory.

Other methodologies and factors that may have been considered in the
process of rating this issuer can also be found in the Credit Policy &
Methodologies directory.

CapitaCommerical Trust is a Singapore-based REIT which invests in
commercial properties. As of 11 July, 2008, CCT owned a portfolio of
high-quality properties, mainly in Singapore's CBD, with a valuation of
approximately S$6.7 billion.

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