October 07, 2024 07:15 GMT
REAL ESTATE: LEG Immobilien (LEGGR: Baa2): Moody's Affirm
REAL ESTATE
- Stable but no upgrade expected. Moody's affirmed on Friday
- Expects LTV to strengthen from 49.5% to 47-48% in next 12-24 months
- Company's stated aim is for 45% LTV which would be the threshold for an upgrade. This is not likely to happen soon.
- Average cost of debt is only 1.7% but as low coupons roll off ICR will be under pressure but expected to be at 3.2-3.5x over next 12-24 months
- Moody's would like to see ICR towards 3.5x for an upgrade. So not imminent.
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