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:
Action: CreditWatch Update
Action: On CreditWatch:Negative
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Product Type: Research Update
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