Moody’s changes view on Deutsche Wohnen to negative

Moody’s Investors Service said it changed the outlook on Deutsche Wohnen SE to negative from stable.

“The negative outlook reflects the increasingly negative political environment that Deutsche Wohnen faces in its core market Berlin. Political pressure in Berlin has increased in the last year, with many different proposals being floated by politicians to lower rental growth burden on tenants. The most relevant testimony of the political headwinds is an expected law that intends to cap and substantially freeze residential rents. Deutsche Wohnen's business risk is concentrated in Berlin, with roughly 75% of its income generated in Germany's capital,” said Moody’s in a press release.

Moody’s also affirmed the A3 senior unsecured and issuer ratings.

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