16th Jul 2020 14:02
(Alliance News) - Moody's Investors Service on Thursday downgraded its ratings on UK shopping centre and retail parks operator Hammerson PLC, citing continued damage to the retail sector by the coronavirus pandemic and its expectation of a prolonged downward pressure on rents and values.
The ratings agency downgraded Hammerson's issuer rating and senior unsecured ratings to Baa3 from Baa2. The ratings and outlook have been kept under review.
Moody's believes the London and Johannesburg-list landlord can no longer sustain credit metrics that are commensurate with a Baa2 rating, as coronavirus has resulted in an accelerating trend towards e-commerce, resulting in a weaker tenant base with rising insolvencies and customers negotiating rent reductions.
Shares in Hammerson were up 1.9% at 76.58 pence each in London on Thursday afternoon. They were up 2.0% in Johannesburg at ZAR16.29.
By Tapan Panchal; [email protected]
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