S&P stabilizes Vonovia view

S&P said it changed its outlook for Vonovia SE and its subsidiary Deutsche Wohnen SE to stable from positive and affirmed their BBB+ ratings.

“We expect Vonovia to post stable operating performance in 2023-2024 following solid third-quarter results. On Nov. 4, 2022, the company reported sustained rental growth, with 3.3% like-for-like in the first nine months of the year (following 3.4% in first-half 2022 and 3.1%-3.9% in the previous three years). This was supported by indexation, record low vacancies (2.1%), and modernization investments, which enabled Vonovia to increase rents. At the same time, the company revealed record-high tenant satisfaction results from its survey,” S&P said in a press release.

S&P said it no longer expects Vonovia will achieve levels in line with a higher rating by year-end 2023, due to higher debt financing costs and potential revaluation losses the agency forecasts for 2023-2024.

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