Moody's downgrades ADO Properties

Moody's Investors Service said it downgraded to Baa3 from Baa2 the long-term issuer rating on ADO Properties SA and its senior unsecured domestic currency bond rating.

Moody's also downgraded ADO's short-term issuer rating to P-3 from P-2.

All of the ratings also were placed on review for further downgrade.

The actions reflects ADO's failure to further diversify its sources of funding and raise the level of unencumbered assets, combined with a more aggressive liquidity management compared to expectations, Moody's said.

The more aggressive liquidity management is also the reason for the review for downgrade, the agency added.

The greater use of commercial paper combined with limited back-up facilities has substantially increased ADO's funding needs, Moody's said.

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