S&P Global Ratings upgraded CBRE Group Inc. unit CBRE Services Inc.'s issuer credit rating, and the ratings on its unsecured revolving credit facility and unsecured senior notes, to BBB+ from BBB, with a stable outlook.
The rating agency said the upgrade reflects the decline in the company's net leverage to 1.6x in 2017 from 2.3x in 2016 and the agency's expectation that leverage will remain between 1.5x and 2.0x over the next two years.
S&P also credited the upgrade to the company's revenue diversification into recurring, fee-based services; its conservative financial policies; and its leading market position.
The stable outlook is based on the rating agency's expectations of a steady commercial real estate market with no large-scale acquisitions.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings. The original S&P Global Ratings documents referred to in this news brief can be found here.