Fitch assigns BB+ to RGY, bonds

Fitch Ratings said it assigned Ronesans Gayrimenkul Yatirim AS (RGY) an expected long-term issuer default rating of BB+(EXP) with a stable outlook.

The agency also assigned BB+(EXP) expected senior unsecured and expected instrument ratings for the group's proposed new senior unsecured bond.

Fitch said the rating reflects RGY's strong market position as one of Turkey's largest property companies, which is supported by its €1.5 billion portfolio of retail and office assets located in Turkey's largest cities.

The group has a well-managed, diverse tenant base of international and local companies. Retail occupancy has historically exceeded 95% and weighted average lease lengths were 6.8 years at year-end Dec. 31, 2017.

RGY has 11 yielding assets leading to some asset concentration; however, a higher level of development is increasing diversification. Fitch said it expects expansion to reduce to more stable levels from 2019.

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