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Moody's puts RESIDOMO ratings under review for upgrade


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Moody's puts RESIDOMO ratings under review for upgrade

Moody's placed the Ba3 corporate family rating and senior secured notes of RESIDOMO s.r.o. under review for upgrade following the planned acquisition by Heimstaden Bostad AB (publ).

The outlook was also revised to ratings under review from stable.

The rating agency said the rating review for upgrade reflects its view that RESIDOMO would be part of a stronger group with solid financial and business risk profiles after the transaction. Moody's added that the Czech residential property company will have greater access to diverse funding sources to support growth.

The Blackstone Group Inc. and Round Hill Capital LLC agreed to sell RESIDOMO to Heimstaden for €1.3 billion, subject to customary antitrust clearance. According to the rating agency, the companies have yet to announce any changes regarding RESIDOMO's capital structure, which includes a roughly 1.7 billion Czech koruny shareholder loan and a €680 million 3.375% senior secured bond due 2024.

RESIDOMO owns the largest privately held residential portfolio in the Czech Republic, comprising roughly 4,515 assets.

As of Jan. 16, US$1 was equivalent to 22.61 Czech koruny.