German Real-Estate Shares Fall After Moody's Cuts Vonovia Rating
November 02 2022 - 8:36AM
Dow Jones News
By Ed Frankl
Shares in German real-estate companies fell Wednesday after
ratings agency Moody's cut the investment grade of Vonovia SE.
Moody's downgraded the Bochum-based company to Baa1 from A3,
albeit with an outlook that remains stable, as rising interest
rates have weakened the outlook for real-estate valuations and
would significantly increase cost of debt.
At 1145 GMT, shares in Vonovia, its subsidiary Deutsche Wohnen
SE, LEG Immobilien SE and TAG Immobilien AG were down 4.8%, 3.3%,
4.9% and 5.9%, respectively.
The more cautious stance from Moody's and other credit ratings
agencies is "completely understandable" and Vonovia could
potentially speed up its progress on reducing its debt, analysts at
Berenberg said in a note.
Peer rating agency S&P gives Vonovia a BBB+ rating.
Write to Ed Frankl at edward.frankl@dowjones.com
(END) Dow Jones Newswires
November 02, 2022 08:21 ET (12:21 GMT)
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