S&P downgrades Citycon

S&P said it lowered the ratings on Citycon Oyj to BBB- and A-3, along with the rating on its senior unsecured notes to BBB-.

Citycon's 2018 operating performance and leverage metrics were weaker than expected due to difficult market conditions, S&P explained.

Because its portfolio lost value and the company disposed of fewer assets than forecasted, it missed its loan-to-value target of 45%, the agency said.

S&P also said it expects the challenging market conditions to prevail and the debt-to-debt plus equity ratio to remain sustainably higher than 50%.

The stable outlook indicates that despite weakening economic trends in its key markets, the agency said it expects the company's income to prove resilient over the next 12- to 24-months.

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