S&P lifts Vesteda, debt to BBB+

Standard & Poor's said it raised its long-term corporate credit rating on Vesteda Residential Fund FGR and its finance subsidiary Vesteda Finance BV to BBB+ from BBB.

The outlook is stable.

The agency also raised its issue ratings on the company's senior unsecured debt and on its revolving credit facility to BBB+ from BBB.

S&P said the upgrade reflects Vesteda's improved credit metrics following an equity increase of €600 million last year, recent debt refinancing activities, and a turnaround in the Dutch residential real estate market.

The agency considers the company's improvement in credit metrics to be sustainable, with debt to debt plus equity just below 30% as of the end of 2015, while EBITDA interest coverage was at 4 times and debt to EBITDA at 7 times on the same date.

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