Moody's downgrades Deutsche Wohnen

Moody's Investors Service said it downgraded Deutsche Wohnen SE's long-term issuer and senior unsecured ratings to Baa1 from A3.

“The downgrade reflects the changed credit quality of its parent Vonovia SE (Vonovia, Baa1 stable) and the high degree of operational and financial linkage of Deutsche Wohnen with its parent. Vonovia's rating downgrade reflected the changed operating environment for Vonovia, with strongly rising interest rates weakening the outlook for property values and substantially increasing the marginal cost of debt. This will weaken Vonovia's, and, hence, Deutsche Wohnen's, credit metrics over time and make the execution of its large disposal program more challenging,” Moody’s said in a press release.

The outlook remains stable.

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