S&P puts Alstria Office on watch

S&P said it placed Alstria Office REIT-AG’s BBB+ ratings on CreditWatch with negative implications.

The placement follows Alstria agreeing to be acquired by Brookfield Asset Management, the agency said.

“The CreditWatch reflects our assumption that Alstria's credit metrics might weaken as a result of Brookfield Strategic Real Estate Partners IV's (Brookfield's) voluntary public takeover offer,” S&P said in a press release.

The CreditWatch reflects at least a one-in-two likelihood of a downgrade of one or more notches, upon completion of the transaction and if Alstria's revised financial policy no longer be commensurate with the BBB+ rating, sustaining a ratio of debt to debt plus equity of below 35% and debt to EBITDA of 9.5x or below, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.