Rents to remain stable and occupancy high says Moody's

Actual debt service coverage ratios (DSCR) were above 3x, while appraisers' loan-to-value ratios were in the 20-32% range.

This performance trend was also observed throughout 2010, said the ratings agency in its report entitled "Singaporean CMBS 1Q2011 Performance Review."

According to Marie Lam, a Moody's VP/Senior Credit Officer and author of the report, vacancies and rents in office buildings go well with Moody's stabilized assumptions, while vacancy rates in shopping malls were even lower than they assumed.

Overall, the commercial real estate sector in CMBS transactions has benefited from the strength of Singapore's economy, which recorded 8.5% GDP growth in 1Q2011 based on advance estimates.