Moody's Investors Service revised its outlook on ADO Properties SA to negative from stable, while affirming the company's ratings.
The rating agency affirmed the company's Baa3 long-term rating, its P-3 short term rating, and the Baa3 senior unsecured bond rating.
The negative outlook takes into account the uncertain financial policy and strategy implications for ADO following the signing of a merger agreement by Germany's Adler Real Estate AG to acquire all the shares in ADO Group Ltd., which will give it a 33% stake in Luxembourg-based ADO Properties.
The negative outlook also reflects a lack of clarity around whether ADO Properties will continue to be run as a separate and independent real estate company with its existing financial policy after the deal closure.
Moody's knows that the transaction is yet to be approved by a general meeting of ADO Group, but given the concentrated shareholdings on ADO Group level, Moody's assumes a high likelihood of the transaction to materialize.
