Moody's upgraded its long-term issuer rating on Central Europe-focused developer CPI Property Group SA to Baa2 from Baa3, and changed the outlook to stable from positive.

The rating agency attributed the upgrade to the company's progress in reducing leverage and boosting its financial flexibility by increasing the number of unencumbered assets and diversifying funding sources. Moody's also noted the Luxembourg-based company's robust operating performance, among other factors.

The stable outlook reflects a favorable operating environment and the agency's expectation that CPI Property will continue to generate stable cash flow and maintain good liquidity while keeping its occupancy levels high and adhering to a balanced growth plan.

CPI Property owns a €7 billion, 420-property diversified portfolio, with the majority of the assets in the Czech Republic and Berlin.