S&P turns Workspace outlook to negative

S&P said it affirmed its BBB ratings for Workspace Group plc and its debt, removed the ratings from negative watch, where they were placed on March 10, and revised the outlook to negative.

The agency revised its outlook for the company and said it sees Workspace’s credit metrics improving gradually though remaining near its downgrade thresholds.

“In our updated base case, we take into account Workspace's incumbent portfolio's recently improving operating performance, with like-for-like rent roll increasing by 8.7% between March 2021 and March 2022, and occupancy up to 89.6% as of end-March 2022, compared with 81.8% a year before. This roughly corresponds to the Workspace's targeted structural occupancy. We understand that this positive momentum has continued in the first quarter of 2022, fueled by the removal of pandemic-related social distancing measures in the U.K. and by the improving GDP growth in 2021,” S&P said in a press release.

The agency noted Workspace plans to raise about £240 million through asset sales.

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