Moody's snips MAS

Moody's Investors Service said it downgraded MAS plc’s corporate family rating to Ba2 from Ba1 and the rating of its backed senior unsecured notes to Ba2 from Ba1. The notes were issued by MAS Securities BV, guaranteed by MAS and are due in May 2026.

"MAS' operating performance remains solid, even under the current difficult economic environment, still the downgrade of the ratings reflects a weak funding environment for real estate companies, driven by the sharp increase of interest rates and widening credit spreads that have materially increased marginal financing cost and reduced availability of debt, especially in the public capital markets," said Ana Silva, a Moody's vice president-senior analyst and lead analyst for MAS, in a press release.

"In such an environment the company's sizeable funding commitment to its development joint venture (the DJV) in combination with a debt repayment wall in May 2026 require that MAS adopts an early action plan to retain earnings, shore up liquidity and secure alternative financing options to reduce refinancing risks," Silva added.

The outlook for both entities remains stable.

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