Rating

Rating AgencyRating TypeRatingOutlook
S&Plong term ratingBBB+Stable
S&Pshort term ratingA-2 
S&P Maalotlong term ratingilAA+Stable
S&P Maalotshort term ratingilA-1+ 

Financial Policy

  • Strive to Achieve A- global rating in the long term
  • LTV limit at 45%
  • Debt to debt-plus-equity ratio at 45% (or lower) on a sustainable basis
  • Maintaining conservative financial ratios with a strong ICR
  • Unencumbered assets above 50% of total assets
  • Long debt maturity profile
  • Good mix of long term unsecured bonds and non-recourse bank loans
  • Support convertible bond holders to convert into equity
  • Dividend of 65% of FFO I per share

S&P Anchor Rating Matrix

In December 2017, Aroundtown's ("AT") credit rating was upgraded to 'BBB+' by Standard and Poor’s Rating Services ("S&P"). The rating increase followed the 'BBB' rating assigned by S&P in June 2016, acknowledging Aroundtown’s increased scale and scope, enhanced diversification and the continuously strong like-for-like rental income growth. Further, S&P acknowledged Aroundtown's well balanced portfolio across multiple asset types and regions with no dependency on a single tenant, asset type or region, underlining the company's strong business risk profile. An integral part of Aroundtown's strategy is to achieve a rating of 'A-'.

Aroundtown holds a significant stake in Grand City Properties ("GCP"), a leading market player in the German residential real estate market. GCP is listed on the Prime Standard of the Frankfurt Stock Exchange and is an MDAX constituent. GCP maintains investment-grade ratings from two leading credit rating agencies, S&P ('BBB+') and Moody's ('Baa1'), with a long-term target rating of A-.

Business risk profile
Financial risk profile
g
r
1
Minimal
2
Modest
3
Intermediate
4
Significant
5
Agressive
6
High Leveraged
1
Excellent
aaa/aa+
aa
a+/a
a-
bbb
bbb/bb+
2
Strong
aaa/aa+
a+/a
A-
Target
AT
BBB+
GCP
bbb
bb+
bb
3
Satisfactory
a/a-
bbb+
bbb/bbb-
bbb-/bb+
bb
b+
4
Feir
bbb/bbb-
bbb-
bb+/a
bb
bb-
b
5
Weak
bb+
bb+
bb/a
bb-
b+
b/b-
6
Vulnerable
bb-
bb-
bb-/a
b+
b
b-/bb+
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