S&P cuts Alstria to junk

S&P said it lowered Alstria Office REIT AG’s issuer rating to BB+ from BBB- but affirmed its senior unsecured notes at BBB-. The agency assigned a 2 recovery rating to the bonds.

“In our revised base-case forecast, which includes Alstria's announced extraordinary dividend, we no longer anticipate the company's credit metrics will be in line with an investment-grade rating. Alstria's S&P Global Ratings-adjusted debt-to-debt plus equity ratio stood at 55.4% on June 30, 2023, and EBITDA rolling 12-month interest coverage dropped to 1.3x, breaching our downside thresholds for an investment-grade rating.

“Including the anticipated special dividend payment, we now forecast that S&P Global Ratings-adjusted ratio of debt to debt plus equity will be 57%-59% over the next 24 months and EBITDA interest coverage near 1.3x,” the agency said in a press release.

The outlook is negative.

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