Fitch moves Globalworth view to negative

Fitch Ratings said it revised Globalworth Real Estate Investments Ltd.'s outlook to negative from stable while affirming its BBB- long-term issuer default and senior unsecured ratings.

“The negative outlook reflects Globalworth's net debt/EBITDA that is high for its rating and a deleveraging profile that is contingent on the timely realization of disposal proceeds. Disposals can be challenging in a time when price expectations of prospective buyers and sellers less often match, buyers have become more risk averse and procuring external financing is more difficult,” Fitch said in a press release.

The agency said it expects Globalworth’s net debt/EBITDA to retreat to 8.4x by end-2023 from 10.6x at the end-2022 but mainly because of asset sales. “Without further disposals, we forecast leverage to increase back towards 9x by 2026 on refurbishment capex.”

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