Global property groups face tough times

KUALA LUMPUR: The pain gripping the world's rated and unrated commercial real estate companies seems far from over, with significant challenges remaining, Standard & Poor's Ratings Services said.

In a report issued on Aug 7, entitled "Global Real Estate Companies Weather Stormy Period, But Still Face Tough Times",S&P credit analyst Craig Parker said the still-challenging credit market and economic conditions will continue to drive negative credit trends across all regions in the near term.

"And although there are some pockets of positive sentiment, there is likely to be more negative rating actions in coming months, largely due to our concerns regarding the operating and financing difficulties facing the rated sector," he said.

The report discusses the credit quality of rated real estate investment trusts and real estate operating companies across the US, Europe, and Asia-Pacific. It also highlights the most significant credit-related challenges facing the sector.