S&P Global Ratings affirmed its BBB-/A-3 issuer credit rating on ADO Properties SA and revised its outlook to negative from stable.
The negative outlook takes into account the uncertain governance, operational strategy and financial policy of the real estate company following its recent agreement to sell approximately 5,800 residential units in Berlin to Gewobag Wohnungsbau-Aktiengesellschaft Berlin.
The transaction, which may close in December, will coincide with Adler Real Estate AG's proposed takeover of Israel-headquartered ADO Group Ltd., which will enable Adler to become an indirect shareholder of ADO Properties and could allow Adler to assume a dominant position on ADO Properties' board.
Ratings said the negative outlook reflects the possibility of a downgrade if it appears ADO Properties' strategy or financial policy will skew from its current position and if its governance will be more in favor with its shareholders than its stakeholders.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings.
