Moody's eyes TAG for downgrade

Moody's Investors Service said it placed on review for downgrade TAG Immobilien AG's Baa3 long-term issuer rating and revised the outlook to ratings under review from negative.

“The review for downgrade is a result of mounting refinancing pressure including the refinancing of a bridge facility used to fund its recent Robyg acquisition. We caution that weaker capital markets may make it more challenging for TAG and certainly more costly to refinance maturing debt, putting pressure on the group's rating in addition to shorter term liquidity needs. We are also concerned about the business outlook for its Polish operations given high inflation and significantly rising interest rates,” Moody’s said in a press release.

The review will consider management addressing refinancing needs by a variety of measures including asset sales and improving liquidity from debt and equity markets and how the company will manage its capital structure in a higher interest rate environment, the agency said.

Moody’s said it will also focus on TAG’s Polish development business.

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