13th May 2020 12:50
(Alliance News) - Moody's Investors Service on Wednesday downgraded to Baa2 from Baa1 the issuer rating and the senior unsecured ratings of Hammerson PLC, with the outlook remaining under review.
Moody's said it downgraded the shopping mall operator because leverage will be higher than it expected.
In an announcement made by Hammerson on Wednesday last week, the company said that the GBP400 million sale of seven UK retail parks will not proceed.
In addition, Moody's said it has heightened concern that the coronavirus pandemic will make it more challenging for Hammerson to achieve its deleveraging plans.
The ratings review Moody's initiated on April 8 remains unresolved, it said. The review for downgrade will assess the impact of the coronavirus outbreak on Hammerson, the ratings agency explained.
Therefore, upward rating pressure is unlikely at this point, Moody's said.
Meanwhile, negative rating pressure could develop if the business disruptions last longer than until the end of June.
Hammerson shares were trading 4.5% higher in London on Wednesday at 47.05 pence each, while in Johannesburg, the stock was down 0.1% at ZAR10.59 a share.
By Evelina Grecenko; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Hammerson