Grand City Properties Downgraded to BBB by S&P

Grand City Properties S.A. has announced a credit rating downgrade by Standard & Poor’s to BBB from BBB+. This decision aligns with S&P's methodology following a similar downgrade for Aroundtown due to economic challenges. The update affects the company's bonds, now rated BBB, and perpetual notes downgraded to BB+.

This downgrade is attributed to macro-economic uncertainties and a slowing German economy affecting Aroundtown's business activities. However, S&P expects Grand City Properties' operating performance to remain solid, supported by favorable real estate market conditions in Germany and London, sustaining positive rental growth.

The firm emphasizes its prudent financial management approach, characterized by a reduction in leverage and maintenance of strong liquidity. Grand City Properties continues to show significant financial resilience with high credit metrics and substantial headroom in meeting financial covenants.