S&P puts Corestate on watch

S&P said it placed Corestate Capital Holding SA’s BB- long-term issuer credit rating and BB- issue-level ratings on Corestate and its debt on CreditWatch with negative implications.

On Wednesday, Corestate Capital said the expected asset sales and participations necessary to address future senior debt maturities are still outstanding, with only €47 million of unrestricted cash on the balance sheet, the agency noted. If the sales are delayed, it could create a liquidity problem for Corestate.

“We expect to resolve the CreditWatch placement over the next one-to-three months. We note that the company has continuously delayed the accumulation of liquidity buffers or postponed assets sales, despite its large concentration (totaling about €500 million) of senior debt maturities in November 2022 and April 2023. Failing to address these soon may put downward pressure on our BB- rating and we could lower it by one notch or more over the next 90 days,” S&P said in a press release.

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