Grand City Properties S.A.: ANNOUNCES MOODY’S ASSIGNMENT OF Baa2 ISSUER RATING AND COMPANY SETS FURTHER RATING IMPROVEMENTS AS A STRATEGIC GOAL

Pressemitteilung der Grand City Properties S.A.:

Grand City Properties S.A. („GCP“ or the „Company“) announces today that Moody’s Investors Service („Moody’s“) has assigned a first-time long-term issuer rating of Baa2 to the Company, with a stable outlook.

Moody’s state that the Company’s rating is based on moderate leverage, financial strength metrics stronger than those of similarly rated peers and good liquidity profile. The rating is supported by the Company’s prudent financial policies and the healthy debt maturity profile.

Moody’s view the asset quality of GCP’s property portfolio as mixed owing to its strategy to acquire under-managed properties for their turnaround potential. Moody’s acknowledged that GCP has developed a good track record of increasing the occupancy and rental income of acquired assets and reducing their operating and non-recoverable costs.

The rating is positively affected by the mix in major cities and other densely populated areas geographically diversified across Germany with a granular tenant base. The Company’s scale is still smaller than most of its rated investment-grade peers. Looking forward, the Company regards the assigned rating as a supporting step to reach a higher and improved rating score and further reiterate the company’s strategic goal to continue to improve its rating.

Grand City Properties S.A.