Moody's trims TAG to junk

Moody’s Investors Service said it downgraded TAG Immobilien AG’s corporate family rating to Ba1 from its Baa3 issuer rating. The agency also revised the outlook to stable from under review.

“A combination of factors resulted in the assignment of a Ba1 long-term corporate family rating for TAG. TAG operates in a weaker operating environment with rising interest rates, reduced access to debt and equity capital markets, and concerns over property values.

“TAG's financial flexibility is reduced in this operating environment, which makes the company more susceptible to shocks while working to secure liquidity for 2023 including repayment of the bridge facility maturing in early 2024. This is combined with reduced sales and a less predictable sales outlook for its Polish residential sales business that TAG acquired in early 2022,” Moody’s said in a press release.

The stable outlook reflects measures TAG “has taken alongside a moderately negative view on the German residential market,” the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.