S&P lifts Globalworth Real Estate

S&P said it raised Globalworth Real Estate Investments Ltd. issuer credit rating to BBB- from BB+, along with the issue rating on its senior unsecured notes.

Through its acquisition strategy, Globalworth Real Estate has expanded its portfolio to more than €2.4 billion as of Dec. 31, 2018, S&P said, and diversified its operations in terms of geography, assets, and tenants.

The company's tenant concentration risk has reduced significantly with the top 10 tenants accounting for only 28.4% of its total rents, compared with 50% a year ago, the agency said.

S&P said this concentration is better than that of most office peers in the same business risk category.

Most of Globalworth's tenants have an investment-grade rating, limiting the risk of rent delinquencies, the agency said.

Globalworth's geographic diversification has improved, but Romania still accounts for 51% of its portfolio, S&P said.

The company's business risk remains underpinned by the prime quality of its modern office assets and its large share of international tenants, which make it less dependent on economic conditions in Romania and Poland, the agency said.

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