S&P Global Ratings affirmed its BB long-term issuer credit rating on German property investment company Adler Real Estate AG.
The outlook remains positive.
The rating agency also affirmed its BB+ long-term issue rating on the company's senior unsecured debt.
The move comes after Adler Real Estate signed a deal to buy a 41.04% stake in Brack Capital Properties NV. The company has also launched a public tender offer with the target to acquire an overall stake of up to 70% plus 1 share in Brack Capital Properties.
S&P believes the purchase will lead to a marginal improvement in Adler's business risk profile.
The positive outlook reflects the rating agency's view that Adler could be upgraded within the coming six to 12 months, conditional upon the execution of the deal, along with an enhancement of EBITDA interest coverage above 1.8x and debt-to-debt-plus-equity under 60% over the next few months.
S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.