Moody's downgrades Demire

Moody's Investors Service said it downgraded Demire Deutsche Mittelstand Real Estate AG's long-term corporate family rating and the senior unsecured rating of its €600 million notes maturing in October 2024 to B2 from B1.

“The downgrade follows what we perceive as mounting refinancing pressure from a repayment wall under the company's senior unsecured notes maturing in October 2024. Higher economic uncertainty, continuously increasing interest rates and credit spreads will drive future funding cost to a level well above the current one at an average of 1.67%.

“On the other hand, we acknowledge that the company has started targeted asset sales, in order to shore up liquidity and reduce the refinancing wall in 2024, with some of them already in advanced stages. However, we also note that the current market environment raises execution risk as to the pace and conditions for disposals,” Moody’s said in a press release.

The outlook remains negative.

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