S&P upgrades Aroundtown

S&P said it raised the long-term corporate credit rating on Aroundtown Property Holdings plc to BBB from BBB-.

The outlook is stable.

The agency also said it raised the ratings on the company's senior unsecured debt to BBB from BBB-.

The upgrade follows the company’s increased scale and scope of its property portfolio to about €4.2 billion as of the end of March 2016, S&P said.

The agency said it considers the company’s partial consolidation of its 32% holding of Grand City Properties SA, its revised acquisition strategy with an increased focus on higher occupied assets and the resulting material improvement in vacancy rates to less than 10%.

This improved the assessment of Aroundtown’s business risk profile, S&P said.

The ratings are supported by the company's good scale and diversification across multiple property types, the agency added.

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