High asset quality and strategically located asset. Good tenant quality with stable operating performance. Solid support from sponsors. Single asset concentration risk. Stable earnings and cash flows. Limited maintenance capital-expenditure requirement. Moderate leverage level. Low borrowing cost. The stable outlook on RCS Trust reflects our view that the trust will remain a highly strategically important investment to CapitaLand Mall Trust (CMT) over the next 24 months at least. We could downgrade RCS Trust if we lowered the credit assessment on CMT, or we believe that support from its sponsors has waned, or the trust's shareholding structure changes materially. Rating pressure could also occur if CMT's funds from operations (FFO)-to-debt ratio weakens below 9%. The most likely cause for this deterioration
