Fitch turns Globe Trade view to negative

Fitch Ratings said it revised the outlook on Globe Trade Centre SA (GTC) to negative from stable and affirmed the long-term issuer default rating and senior unsecured rating at BBB-.

“The negative outlook reflects GTC's elevated leverage, which remains high for a BBB- rating, and uncertain prospects for deleveraging as its expected 4Q22 equity raise of minimum €150 million did not happen due to market conditions. Without the equity injection, GTC's cash flow leverage is above Fitch's downgrade rating sensitivity threshold of 9.5x net debt/EBITDA. Asset disposals may take time and Fitch's updated forecasts show a delay in returning to a financial profile consistent with the rating,” the agency said in a press release.

Fitch noted it forecasts GTC's net debt/EBITDA will decline to 10.8x by year-end 2023 from 11.5x at the end of 2022. The lower leverage will come from not paying a 2022 dividend, pending shareholder approval, rent indexation in 2023 and the January sale of its Debrecen office in Hungary.

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