Rating
Rating Agency | Rating Type | Rating | Outlook |
S&P | long term rating | BBB+ | Stable |
S&P | short term rating | A-2 | |
S&P Maalot | long term rating | ilAA+ | Stable |
S&P Maalot | short term rating | ilA-1+ |
Credit Rating reports
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
- 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
r
Minimal
Modest
Intermediate
Significant
Agressive
High Leveraged
Excellent
Strong
BBB+
GCP
Satisfactory
Feir
Weak
Vulnerable