S&P revises Altarea outlook to negative

S&P said it revised the outlook for Altarea to negative from stable and affirmed the BBB issuer rating.

“Due to the lockdown in France, construction work and project sales are unable to advance, which will cause delays in deliveries and consequently in commercialization. In addition, we anticipate Covid-19 will have a massive negative impact on global economic activity, which may harm the ability of households to buy properties in the coming 24 months. We, therefore, believe Altarea is likely to experience some decline in revenue at its development arm, Altareit,” said S&P in a press release.

“The negative outlook reflects that we could downgrade Altarea over the next 24 months if its operating performance comes under higher pressure than we currently anticipate, affected by the Covid-19 pandemic, which would in turn translate into a deterioration of credit metrics beyond our revised base case,” said S&P.

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