S&P Global Ratings assigned its BBB+/A-2 long- and short-term issuer credit ratings to French property giant Icade unit Icade Santé SAS, which invests in healthcare real estate. The ratings outlook is stable.
The action factored in Icade Santé's strong position in the French healthcare real estate market. Regulations on price control and limitations on the number of beds and new facilities in the sector lower the company's exposure to new players in the field.
Its diversified portfolio of mostly short-term ambulatory medical care with reduced accommodation structures is fully leased and generates stable cash flow as compared to other asset classes such as office or residential properties in capital cities.
However, the company's tenant base is weak as 85% of its rent comes from Ramsay Santé SA and ELSAN SAS. It is also at risk to changes in the country's welfare system and sociodemographic trends despite its plans for international expansion.
The stable outlook takes into account Ratings' expectation for the overall group to keep growing revenue from its office and healthcare segments, among other factors.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.