Fitch revises Signa view to negative

Fitch Ratings said it revised the outlook on Signa Development Selection AG to negative from stable and affirmed the long-term issuer default rating at B- and senior unsecured rating at B+ with an RR2 recovery rating. The agency also affirmed Signa Development Finance SCS' €300 million unsecured 2026 bond guaranteed by Signa Development Selection at B+/RR2.

“The negative outlook reflects future development spend requirements, including bank funding, for Signa Development's prospective completions. This is balanced by the benefit of planned monetization of recent forward-sold and completed projects, and opportunistic disposals to ensure liquidity for the group. Disposal proceeds, while protecting the group's above-20% developer profit margins, have reduced debt. The remaining projects are focused on high-end residential units, particularly in Vienna and new offices in central Berlin locations,” the agency said in a press release.

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