28th Apr 2020 18:19
(Alliance News) - Moody's Investors Service on Tuesday affirmed Globalworth Real Estate Investments Ltd's long term issuer rating but did change the outlook to negative.
Moody's held Globalworth's long term issuer rating at Baa3, as well as the Baa3 ratings on its EUR550 million senior unsecured notes due 2022 and the EUR550 million senior unsecured euro medium term notes maturing 2025.
"At the same time Moody's changed the company's rating outlook to negative from stable," the credit ratings agency said.
"Moody's has changed the company's outlook to negative following Romania's sovereign rating outlook change to negative from stable. Romania's Baa3 sovereign rating was affirmed. The negative outlook reflects the combined effects of a structural weakening in the country's public finances and a worsening of its external position that heightens susceptibility to event risk."
Globalworth is a Poland and Romania-focused real estate firm.
Moody's added: "The coronavirus outbreak adds pressure to Globalworth's credit profile, given the negative impact on the economy and an expected rise in unemployment rates. The rapid and widening spread of the coronavirus outbreak, deteriorating global economic outlook, falling oil prices, and asset price declines are creating a severe and extensive credit shock across many sectors, regions and markets. The combined credit effects of these developments are unprecedented."
The ratings agency noted that it expects demand for office space to be hit amid a more "restrained investment sentiment".
"Prime office landlords such as Globalworth could face more challenging operating conditions, including weaker rental growth prospects and pressure on properties valuation," Moody's added.
Globalworth shares closed 0.8% lower at EUR6.10 each in London on Tuesday.
By Eric Cunha; [email protected]
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