S&P revises Vonovia view to positive

S&P said it revised Vonovia SE’s outlook to positive from stable and affirmed the BBB+ issuer rating.

On Dec. 8, Vonovia reported the closing of its €8 billion capital increase, which should be used to repay amounts under the syndicated loan facilities agreement that helped funded the €16.5 billion needed for the purchase of 87.6% shares in Deutsche Wohnen, the agency said.

“We could take a positive rating action if Vonovia reduces debt leverage more than we currently expect over the next 24 months, such that its debt-to-debt plus equity falls sustainably below 55% while its debt to EBITDA returns to historical levels, in the 15x-17x range,” S&P said in a press release.

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