Abstract: Despite near-record investment levels, 2007 is likely to be remembered for the subprime crisis, the sharp downturn in debt markets, and the first signs of risk reassessment in the markets during the second half of the year. The capital markets' and investors' perception of financial risk and the real estate sector have dramatically changed in recent quarters. This has precipitated dramatic falls in most of the listed real estate companies' share prices, from a high premium on net asset value (NAV) in March 2006 to a significant discount recently. At the same time, funding has become much more difficult and expensive for the sector as a whole, but in particular for the aggressive, highly leveraged participants. These trends firstly illustrate

Brief Excerpt: RESEARCH Ratings Definitions Industry Report Card: Pressure Is Rising For European Real Estate Companies, Despite Solid Fundamentals Publication date: 25-Jun-2008 Primary Credit Analyst: Pierre Georges, Paris (33) 1-4420-6778; pierre_georges@standardand...

Report Type: Commentary
Sector: Global Issuers, Structured Finance
Free Sample: Click Here to Download

Enter the keyword(s) which you would like to search for within this document and click "Search"

 

 S&P Credit Research
S&P Credit Research provides analysis on issuers and debt obligations of corporations, states and municipalities, financial institutions, insurance companies and sovereign governments. S&P also offers insight into the credit risk of structured finance deals, providing an independent view of credit risk associated with a growing array of debt-securitized instruments.