S&P rates Aroundtown notes BB+

S&P said it assigned a BB+ long-term issue rating to the perpetual, optionally deferrable subordinated hybrid notes issued by ATF Netherlands BV, under a subordinated guarantee provided by the parent company Aroundtown Property Holdings plc.

The proceeds will be used to fund the company's growth and cover some refinancing needs, the agency said.

S&P said it classifies the notes as having intermediate equity content until their first call dates in 2023.

This is because they meet the criteria in terms of their subordination, permanence and optional deferability during this period, the agency said.

The BB+ rating on the notes is derived by deducting two notches from the company’s BBB long-term rating. One notch is for the subordination of the notes and an additional notch is for payment flexibility to reflect that the deferral of interest is optional, S&P said.

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