Moody’s downgrades Entra

Moody's Investors Service said it downgraded Entra ASA’s long-term issuer rating to Baa3 from Baa2 and changed the outlook to stable from negative.

"The rating action balances weakening credit metrics in particular due to rising interest costs with good rental growth, a solid liquidity profile and limited short-term debt maturities," says Maria Gillholm, Moody's lead analyst for Entra, in a press release.

The agency said it forecasts Entra to continue to sell assets which should help effective leverage at around 45-53% and EBITDA interest coverage at 1.7x- 2.6x during 2024-2025.

"The stable outlook factors in the expectation of cash preserving measures and the likelihood of further asset disposals, which should strengthen liquidity further and improve effective leverage," Gillholm added.

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