Moody's downgrades ADO

Moody's Investors Service said it assigned a new corporate family rating of Ba1 to ADO Properties SA. Concurrently, the agency downgraded the senior unsecured rating of ADO to Ba1 from Baa3. The outlook was changed to negative from rating under review.

Moody's said it withdrew ADO's Baa3 rating following its downgrade to Ba1, as per the rating agency's practice for corporates with non-investment-grade ratings.

"The downgrade of ADO's ratings reflect the weaker credit profile following the acquisition of Adler Real Estate AG, which resulted in higher leverage," said Oliver Schmitt, a vice president and senior credit officer at Moody's, in a press release.

"The further downside risk to leverage, and execution risks on the realization of synergies, expected sales, and the intended capital raise, as well as an unclear situation around the intended purchase of Consus Real Estate AG, contribute to the negative outlook of the ratings," Schmitt 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.