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Research Update: France's Gecina 'BBB-/A-3' Ratings Still On Watch Negative On Financial Policy Uncertainties Dec 06

  • ID: 1823099
  • December 2006
  • Region: France
  • Standard & Poors
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On Dec. 5, 2006, Standard & Poor's Ratings Services said that its 'BBB-' long-term and 'A-3' short-term corporate credit ratings on French property company Gecina remain on CreditWatch with negative implications, where they were placed on July 28, 2006. The CreditWatch status reflects a lack of visibility on the group's future strategy and financial and dividend policies, following two recent bids on Gecina's 68.5% owner, Metrovacesa S.A. Based on our assessment of Metrovacesa's creditworthiness, a downgrade could result from: Weak fixed charge coverage at year-end 2006. Although Metrovacesa's leverage has significantly declined, this has mainly been driven by asset revaluations, which has not benefited cash flow metrics. Increasingly aggressive strategies at both Gecina and Metrovacesa, resulting from changes in Metrovacesa's...

Companies mentioned in this report are:
- Gecina

Action: CreditWatch Update
Action: On CreditWatch:Negative

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 READ MORE >

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