Moody's affirms Deutsche Wohnen

Moody's Investors Service said it affirmed the Baa1 long-term issuer rating of Deutsche Wohnen AG after the company made a public takeover offer to acquire Conwert Immobilien Invest SE shares and convertible bonds. The outlook is stable.

"The transaction will deepen its core portfolio in Germany as well as provide diversification in attractive regions with rental growth. The company has confirmed that it aims to maintain its loan-to-value at around 50%, in accordance with its financial policy. In addition, Moody's does not foresee any undue liquidity or execution risk arising from the takeover,” Lynn Valkenaar, a Moody's vice president, said in an agency news release.

The agency said Deutsche Wohnen's Baa1 rating reflects its large scale and franchise value as the second-largest residential real estate company in Germany.

The stable outlook reflects Deutsche Wohnen's prudent financial policies; the outlook for its rental income, which ranges from stable (in regions where the supply and demand is balanced) to good (in regions where demand exceeds supply); and Moody's expectations that the company will continue to deleverage over the course of 2015 and 2016, the agency said.

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