Taipei Financial Center credit outlook downgradedTAIPEI 101: While rental income is robust, the skyscraper has been affected by falling foreign and domestic visitor numbers because of the pandemic, Taiwan Ratings saidBy Crystal Hsu / Staff reporterTaiwan Ratings Corp (中華信評) has downgraded the credit outlook for Taipei Financial Center Corp (台北金融大樓) from “stable” to “negative,” as the operator of the Taipei 101 skyscraper has seen a slump in tourists and shoppers. A message that reads: “Taiwanese pull together as one” with the image of a heart is displayed on Taipei 101 on Thursday last week. Retail sales at the Taipei 101 shopping center are forecast to drop by 31 to 35 percent given the store’s collection of luxury and fashion brands for which consumption is discretionary in nature, it said. The company’s rental income would not be affected by the pandemic, because rental rates are fixed and long-term in nature, it said. In addition, the Taipei 101 building has built up a strong tenant portfolio, mostly high-profile global firms and large domestic companies that can afford above-average rents, it said.

Source: Taipei Times April 24, 2020 15:56 UTC