Grand City Properties S.A.: Standard & Poor’s Ratings Services raised Grand City Properties S.A rating to ‚BB‘ based on strong cash flow metrics and lower debt leverage

Pressemitteilung der Grand City Properties S.A.:

Standard & Poor’s Ratings Services raised Grand City Properties S.A rating to ‚BB‘ based on strong cash flow metrics and lower debt leverage

Standard & Poor’s Ratings Services (‚S&P‘) raised Grand City Properties S.A. (the ‚Company‘) rating from ‚BB-‚ to ‚BB‘ on its long-term corporate credit rating and on the Company’s bonds, due in 2020.

The rating upgrade reflects S&P’s valuation that the Company’s cash flow and leverage ratios are likely to improve by more than expected in 2013 and remain stable in 2014. In addition, S&P upgrades the financial risk profile, based on an improvement of the financial performance of the Company and on the its financial policy to maintain a large, stable, recurring cash flow base with limited asset disposals, and a loan-to-value (LTV) ratio below 55%.

S&P highlight in their research update, the significant portfolio growth the Company has made and the improvement of the assets and tenant diversity. Additionally, S&P emphasize the significant headroom under the debt covenants, which with expected increased occupancy in the asset, rental values, and thus headroom under the covenant, should grow gradually.

S&P provides a stable outlook for 2014, reflecting their opinion that the Company is expected to generate stable recurring cash flow and maintain stable debt leverage in 2014.

S&P state that a reason to increase the Company’s rating, among others, is if the demand/supply trends in the German residential market remain positive and the Company will continue to increase the size and scope of its portfolio.

Grand City Properties S.A.