Fitch rates Neinor BB-, notes BB

Fitch Ratings said it assigned Neinor Homes SA a first-time long-term issuer default rating of BB-. Fitch also gave a BB senior secured rating and an expected secured debt rating of BB/RR3 to Neinor's proposed €300 million of senior secured notes.

“The ratings reflect the company's leading position in Spain with a well-positioned portfolio in the most lucrative regions of the country as well as the development of its own build-to-rent (BTR) portfolio, which allows the company to incur higher leverage. The rating is constrained by the less favorable regulatory environment for Spanish homebuilders compared with France or Germany, which results in higher cash flow volatility, smaller scale and higher leverage,” Fitch said in a press release.

The outlook is stable.

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