S&P rates Deutsche Wohnen notes BBB+

Standard & Poor’s said it assigned a BBB+ long-term issue rating to the proposed €500 million senior unsecured notes to be issued by Deutsche Wohnen AG.

The notes will have a seven- to 10-year tenor, S&P said.

The proceeds of the bond, along with a recent €907 million equity issuance, will be used to repay some of the existing secured debt, finance the acquisition of about 6,500 residential units in Berlin and prepay some interest costs and fund related transaction costs, S&P said.

The BBB+ issue rating reflects a deduction of one notch from the company’s A- issuer credit rating, which is in line with key credit factors for the real estate sector, the agency said.

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