Following the recent affirmation of the issuer rating at BBB-/Negative, Scope has updated its analytical report on Corem Property Group AB.

The issuer rating affirmation is based on the company’s strong operations in commercial real estate and current focus on managing its balance sheet through disposals and debt retirement to help preserve credit metrics.

The Negative Outlook continues to factor in the higher risk of the Scope-adjusted EBITDA interest cover ratio declining and remaining below 2.2x. The Outlook also incorporates our expectation that Corem will maintain the disposal strategy since late 2022 that has helped reduce debt significantly. We understand the issuer is aiming to reduce debt by releasing further capital through asset disposals, which could partly compensate for the weaker interest cover depending on the measures’ eventual impact on the LTV.

This monitoring note does not constitute a credit rating action, nor does it indicate the likelihood that Scope will conduct a credit rating action in the short term. On 22 December 2023, Scope affirmed the issuer rating at BBB-/Negative. Click here for the corresponding rating action release. The latest information on the credit ratings in this monitoring note along with the associated rating history can be found on www.scoperatings.com.

The report can be downloaded here.