S&P Global Ratings upgraded Aroundtown SA's long-term corporate credit rating to BBB+ from BBB, with a stable outlook.

The rating agency also raised its issue ratings on the company's senior unsecured debt to BBB+ from BBB, on its subordinated debt to BBB- from BB+, and on its perpetual notes to BBB- from BB+.

The move follows Aroundtown's recent property purchases, which increased its commercial and residential asset portfolio to roughly €10.4 billion in value as at Sept. 30, compared to €6.2 billion in the year-ago period.

S&P believes the expansion improves the company's business risk profile. The agency cites the company's enhanced asset and tenant diversification, strong growth in like-for-like rental income, while maintaining vacancy levels under 10% on average.

The stable outlook mirrors the agency's opinion that Aroundtown's portfolio, as well as planned property purchases, will result in increased recurring cash flows.

S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.