Following the recent rating action on Corem Property Group AB on 23 December 2025, Scope has released an associated analytical report.

The upgrade follows the successful restructuring of the EUR 2021/2025 bond which provided some relief to AEI’s short-term liquidity pressure. Nevertheless, the rating reflects the still significant refinancing risk for the notes maturing in 2026.

The rating is supported by the issuer’s competitive position, well-diversified business, and strong credit metrics.

The rating reflects expected synergies from the vertical integration of Beton Plus and a solid real estate portfolio. Small scale, high concentration risk, limited liquidity, high leverage and limited ability to deleverage are constraints.

The rating action is driven by weaker interest cover ratio, occupancy rates and weighted average lease term which has led to a downward revision of the issuer rating.

The rating is supported by a very strong business risk profile and the company’s status as a government-related entity, while the relatively weak financial risk profile is a constraint.

The affirmed rating reflects the issuer’s moderate business risk and financial risk profiles, assessed at BB+, and a positive one-notch adjustment for the group’s status as a government-related entity.

The issuer rating of the rated entity is derived from the A rating of its parent Mercedes-Benz Group AG, reflecting the latter’s explicit guarantee on an outstanding bond and implicit guarantee to the rated entity.

The downgrade reflects the effects of adverse business conditions in 2025, which are likely to continue into 2026. The Outlook reflects the good prospects of the planned product launches combined with ongoing cost reductions.

The affirmation reflects the issuer’s ability to maintain resilient credit metrics in adverse market conditions in 2025.