Unibail-RW: Fitch adopts negative outlook

(CercleFinance.com) - Credit rating agency Fitch Ratings now has a negative outlook (vs.
stable previously) for its long-term debt rating of the commercial real estate company Unibail-Rodamco-Westfield.
This may be a forerunner to a downgrade in the corresponding debt rating.

Analysts are worried about the group's debt levels, which are deemed as high for an "A-" rated company. Adopting a negative outlook reflects risk that Unibail's deleveraging will take longer than Fitch originally expected, while development investments will remain high (1.5 billion euros p.a., according to the agency).

As a result, Fitch expects the group's net debt-to-EBITDA ratio to exceed 10x by the end of 2021, it says in a note.


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