Fitch gives Aedas BB-, notes BB

Fitch Ratings said it gave Aedas Homes SA a first-time BB- long-term issuer default rating and an expected senior secured rating of BB with an RR3 recovery rating. The senior secured rating applies to Aedas Homes OPCO SLU 's planned offer of €315 million of senior secured notes, which is guaranteed by Aedas.

“The ratings reflect the continuous improvement in Aedas' operating performance since the company's IPO in 2017. In the last twelve months (LTM) to financial year end-March 2021 the company delivered over 1,900 units (LTM end-December 2018: 230), enabling the company to post a break-even profit in FY20. We expect further growth to stabilize its EBITDA margin at around 20% and reduce leverage as the company is on track to deliver over 2,000 units per year in the next two years (FY23 management target: 3,000 units),” Fitch said in a press release.

“Similarly to other BB- rated Spanish homebuilders, Aedas Homes' secured debt has a one-notch uplift to BB and a RR3 recovery rating, reflecting the significant volatility of collateral values in this asset class in Spain,” the agency said.

The outlook is stable.

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