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REAL ESTATE: CPI Property (Ba1[N]/BB+[N]/NR)

REAL ESTATE
  • Moody’s downgraded CPI Property to Ba1 late Friday, with the outlook still negative, on weak metrics for Ba1. Hybrids lose equity credit.
  • Moody’s assumes around 2bn in disposals by 2025. They see risks on execution of those as well as simplification of the structure and refinancing needs.
  • Negative rating pressure could result from Debt/Assets well above 55% (56.4% reported) or coverage below 1.8x in 2024, 2x thereafter (1.8x reported). Therefore asset sales will be an important driver from here.

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