Fitch Ratings affirmed Atrium European Real Estate Ltd.'s long- and short-term issuer default ratings at BBB- and F3, respectively, and changed the company's outlook to positive from stable.
The rating agency also affirmed the company's senior unsecured rating at BBB-.
In a Dec. 11 note, Fitch said it believes Atrium's overall portfolio quality is improving through the acquisition and development of large shopping centers in Poland and the Czech Republic, while selling a large portion of its smaller properties. Offsetting Atrium's improving asset quality is increased concentration in the company's portfolio, with 10 of its largest properties now making up 63% of market value.
Fitch attributed the positive outlook to its assumption that continued improvement in Atrium's portfolio quality and diversity, coupled with increasingly positive operating momentum, especially in Russia, may result in a positive ratings action in the next 12 to 18 months.