S&P turns Adler view to negative

S&P said it affirmed the B+ issuer ratings for Adler Group SA and its subsidiary Adler Real Estate AG, removed the ratings from CreditWatch with negative implications, where they were placed on Oct. 11, and changed the outlook to negative. The agency also affirmed the BB- ratings on Adler’s senior unsecured debt.

On Wednesday, Adler reported it signed a final sale and purchase agreement to sell 15,500 residential and commercial units to LEG Immobilien SE, for net cash proceeds of €800 million. The deal is expected to close by the end of the month.

Adler also announced the sale of a 7% stake in Brack Capital Properties NV to LEG, and granted it an irrevocable tender commitment for all its remaining BCP shares until Sept. 30, 2022, for a total of about €850 million.

“The negative outlook reflects our view of the uncertainty around the operational performance of Adler's development projects, as well as Adler's successful execution of its strategic review, including the disposal of some of the development projects. It also reflects execution risk relating to Adler's current construction projects and the refinancing of its upcoming debt maturities in a timely manner in the fourth quarter of 2022 and 2023,” S&P said in a press release.

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