European property values are at cyclical highs, boosted by low interest rates and booming investor demand for real estate. The current value cycle is unusual, however, in that rental markets remain relatively weak. Prospects for most European commercial real estate companies rated by Standard & Poor's Ratings Services are stable in the near term, while the medium-term outlook is more clouded. As companies benefit from inflated asset values, many are using the headroom on their balance sheets to increase debt to expand their assets or to reward shareholders over and above what current rental market conditions might warrant. Our credit ratings on European real estate companies are expected to withstand a drop in asset values or a rise in interest...
Companies mentioned in this report are:
- MEPC Ltd.
- Societe Fonciere Lyonnaise S.A.
- Jones Lang LaSalle Inc.
- Klepierre S.A.
- Derwent London PLC
- Cofinimmo S.A./N.V.
- Befimmo S.A.
- Regus Group PLC
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues. SHOW LESS READ MORE >