Moody's Investors Service affirmed its Baa1 long-term issuer rating on Wereldhave NV while downgrading its outlook on the company to negative from stable.
The outlook revision is on the back of Wereldhave's "weaker than expected operating performance across its key regions and increased leverage because of negative portfolio revaluations," Moody's Vice President - Senior Credit Officer and Lead Analyst Roberto Pozzi said in a release. In order for the company to maintain the rating, the company will have to make more investments in its portfolio to improve vacancies and achieve positive rental growth while trimming leverage below 40%.
The company stands a chance of a further downgrade if it fails to have better occupancy levels, among other things.
The agency's Baa1 rating on Wereldhave takes into account the company's solid franchise in the convenience shopping centers business and a geographically well-diversified portfolio, along with a strong fixed charge coverage and a fully unencumbered asset base.
