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PRESS RELEASE: Standard & Poor's Ratings Services raised Grand City Properties S.A. rating to 'BB+' based on stronger capital structure; Outlook Stable

DGAP-News: Grand City Properties S.A., / Key word(s): Research Update/Real Estate Standard & Poor's Ratings Services raised Grand City Properties S.A. rating to 'BB+' based on stronger capital structure; Outlook Stable

14.02.2014 / 18:52

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GRAND CITY PROPERTIES S.A. Luxembourg, 14 February, 2014

Standard & Poor's Ratings Services raised Grand City Properties S.A. rating to 'BB+' based on stronger capital structure; Outlook Stable

Standard & Poor's Ratings Services ('S&P') raised Grand City Properties S.A. (the 'Company') rating from 'BB' to 'BB+' on its long-term corporate credit rating and on the Company's bonds, due in 2020.

S&P provides a stable outlook reflecting their opinion that the Company's steady tenant demand in its main locations should continue to support rental income growth resulting in steady recurring cash flow. Additionally, S&P highlight in their research update the significant portfolio growth GCP has made and the improvement of the assets and tenant diversity.

The rating upgrade is the result of S&P's revised assessment of GCP's improved financial risk profile. Due to the increased equity base, S&P believes that the credit metrics will improve in the coming years. Additionally, S&P's notes the Company's well-capitalized capital structure with an equity ratio of about 50%, a reported loan-to-value (LTV) ratio below 50% and an increased unencumbered asset base to more than 30%.

S&P emphasizes the significant headroom under the debt covenants and projects an increase in occupancy in the assets, which should increase rental values and therefore the headroom under the covenants.

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PRESS RELEASE: Standard & Poor's Ratings Services raised Grand City Properties S.A. rating to 'BB+' based on stronger ...