Moody’s lowers ADO Properties

Moody’s Investors Service said it downgraded the corporate family rating and the senior unsecured rating of ADO Properties SA to Ba2 from Ba1. The outlook was changed to stable from negative.

The agency also withdrew the probability of default rating of Ba1-PD. Moody’s said it does not use the loss given default for speculative-grade companies cross-sector methodology for real estate companies.

“The downgrade follows the exercise ADO’s option to acquire full control of Consus Real Estate AG (Consus) via exercise of an option for 51% in Consus, and an anticipated further voluntary offer for the remaining shares in Consus,” Moody’s said in a press release.

The downgrade reflects the increased development exposure that would come with the acquisition, Moody’s said.

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