The proposed methodology can be downloaded here.

The proposed changes enhance the transparency and detail of Scope’s analytical approach for assigning credit ratings to real estate companies. The methodology would continue to use the modular rating approach comprising the assessments of the business and financial risk profiles as well as supplementary rating drivers.

The material change proposed to the existing methodology is a new guidance on financial policy adjustments in relation to a property company's exposure to interest rate risk.

The non-material changes proposed are:

• Alignment of the phrasing under the qualitative market share assessment with Scope’s Credit Rating Definitions
   
• Guidance on dimensions to assess contribution by region for geographically diversified portfolios
   
• A definition of capital expenditure for property companies
   
• Complementing capital expenditure coverage with a defined slotting
   
• Guidance on what constitutes a predictable sale of assets
   
• Guidance on haircuts applied when assessing liquidity
   
• Further guidance for the analysis of minimum annual investments and minimum haircuts on property values (recovery analysis) linked to a portfolio’s carbon intensity
   
• Typical information and data sources used in the analytical process
   
• Editorial changes

Call for comments

Scope invites issuers, investors and other interested parties to comment on the methodology by 27 April 2025, as part of the agency’s ongoing commitment to transparency and open dialogue with market participants.

Please send your comments to consultation@scoperatings.com.

Scope will review and publish the content of any written response in accordance with regulatory requirements unless the respondent has specifically requested confidentiality.