...September 4, 2020 FRANKFURT (S&P Global Ratings) Sept. 4, 2020--S&P Global Ratings said today that Germany-based residential landlord Vonovia SE (###+/Stable/A-2) will likely sustain debt metrics broadly at current levels even after its issue of about 1 billion of equity through an accelerated bookbuilding. We understand that the recently announced capital increase shall balance the equity component of Vonovia's current 1 billion hybrid bond outstanding with first call date in December 2021. In the meantime, according to the announcement, the company intends to use the proceeds to repay upcoming debt maturities in fourth-quarter 2020 and for potential growth opportunities. We assume the company will carry out this plan, and therefore that it will repay debt according to the equity component of the outstanding hybrid bond, amounting to 500 million. Given Vonovia's publicly announced intention to replace its existing hybrid bond at the first call date next year, we reassess our equity content...
