Moody’s has upgraded Colonial’s credit rating as a long-term debt issuer from the previous “Baa2” to the current “Baa1” in investment grade, although it has changed its outlook from “positive” to “stable.”
The rating agency claims that behind this increase lies Improved forecasts after capital increase of 622 million euros organized this year to welcome CriteriaCaixa into its capital.
“The new rating reflects expected improvements in credit metrics with sustainable growth and lower leverage, driven by a conservative financial policy benefiting from the benefits of the recent capital increase and continued strong operating performance,” Moody’s said.
Concerning the latter, the agency justifies that this operational evolution of the professions is characterized by a high occupancy rate of its office assetsas well as “robust” revenue growth, which reflects “the good quality of its prime portfolio.”
In this sense, he hopes that the debt to gross asset value ratio be reduced in the next financial year below 40%compared to 45% currently, despite the uncertainty in the office market due to teleworking.
For Sabadell, this is “positive” news, although it has little impact on the share price, given that the expansion and the good evolution of the results “are well known”.
