Moody's rates Aedas Homes notes Ba2

Moody's Investors Service said it assigned a Ba2 rating to its new €315 million of backed senior secured notes, to be issued by Aedas Homes OPCO, SLU and guaranteed by Aedas Homes, SA.

The agency also assigned a Ba2 corporate family rating and a Ba2-PD probability of default rating to Aedas Homes.

The CFR is supported by Aedas’ leading market position in the fragmented Spanish homebuilding market, its best-in-class profitability supported by disciplined investment criteria and its ability so far to fully replenish its landbank at a cost consistent with net development margins well above 20% among other factors, Moody’s noted.

However, Aedas’ small scale and a limited operating track record of less than five years, the cyclicality of the homebuilding industry and the sharp economic contraction in Spain due to the coronavirus pandemic which is likely to temper demand for new homes against a backdrop of weaker consumer confidence, rising unemployment as well as potentially reduced availability of mortgage-loans and/or tighter underwriting criteria of banks, constrain the rating, Moody’s said.

The outlook is stable.

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