S&P pulls Diok from watch

S&P said it removed Diok Real Estate AG’s ratings from CreditWatch with negative implications, where they were placed on Jan. 14. The agency also affirmed Diok’s B- issuer rating and the CCC+ rating on its senior unsecured bond.

Diok refinanced upcoming short-term debt maturities and an upcoming €11 million that was due April 30.

“Although the refinancing mitigates a short-term liquidity shortage, we see large liquidity needs over the medium term, with about €80 million coming due in 2023, including Diok's senior unsecured bond with an outstanding amount of €43.6 million as of year-end 2021. In our view, the company's liquidity could come under pressure again if Diok is not able to tackle its 2023 maturities well ahead of the due date,” S&P said in a press release.

The outlook is negative, which means a possible downgrade in the next six to 12 months unless the company can improve its situation, the agency said.

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