Grand City Properties rating increased to investment grade ‚BBB-‚ by S&P

Pressemitteilung der Grand City Properties S.A.:

Standard & Poor’s Ratings Services (‚S&P‘) raised Grand City Properties S.A. (‚GCP‘ or the ‚Company‘) rating from ‚BB+‘ to investment grade rating ‚BBB-‚ on its long-term corporate credit rating and on the Company’s convertible and straight bonds.

The upgrade reflects S&P’s view that GCP’s business profile has improved due to its increased focus on managing a stabilized portfolio of income-producing properties, its increased portfolio size of about EUR2.2 billion, and its greater geographical spread across densely populated regions in Germany.S&P mentioned that GCP increased its geographic presence across Germany and mostly operates in favourable regions with good rental growth prospects and where demand continues to outpace supply from new property developments.

S&P revised upward GCP’s business profile due to the Company’s property portfolio growth to 43,000 units and due to the good asset and tenant diversity.S&P acknowledged GCP’s good track record in acquiring affordable housing blocks that have below-market rents and high vacancies, and successfully lifting occupancy and rent levels.

S&P revised upward their financial projections for 2014-2015, taking into account GCP’s recent acquisitions, refinancing activities, and its lower average cost of debt. S&P has maintained the stable outlook based on the steady tenant demand in GCP’s locations which effect rental income growth.

The Standard & Poor’s Ratings Services Research Update on Grand City Properties S.A. is available on the Company’s website: http://www.grandcityproperties.com/en/downloads

Grand City Properties S.A.