S&P moves Aroundtown view to negative

S&P said it revised its outlook for Aroundtown SA to negative from stable and affirmed the BBB+ ratings on the company and its senior unsecured notes. The agency also affirmed the BBB- ratings on the issuer’s subordinated debt.

“We expect AT's ratio of debt to debt plus equity to temporarily exceed our 50% rating downside threshold in 2023, following our revised base-case assumptions. According to AT's first-quarter results, published on May 30, the company posted a ratio of debt to debt plus equity of 49.3% as adjusted by S&P Global Ratings. This is close to our rating downside threshold of 50%. We understand the company did not perform a valuation process in the first quarter but will include an updated valuation result in its second-quarter results,” S&P said in a press release.

The agency warned there is a three-in-one change it will downgrade Aroundtown over the next 12-24 months if it believes the credit metrics deteriorate beyond the updated base case.

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