Bulletin: Vonovia's Return To Growth Is Rating Neutral As Long As New Investments Don't Compromise Its Deleveraging Target

This report does not constitute a rating action. PARIS (S&P Global Ratings) Nov. 14, 2024--S&P Global Ratings today said that Vonovia SE's (BBB+/Stable/A-2) third-quarter results will support its deleveraging trajectory as long as its new investments are mainly equity funded and EBITDA accretive. We further expect Vonovia to remain prudent and reach its own financial policy target of loan-to-value of 40%-45% in a timely manner, versus 47.9% as of Sept. 30, 2024. The company announced €1 billion of additional capex in 2025. It also achieved €3 billion of disposals year-to-date, which is €1 billion more than our previous base-case expectation for 2024. The impact of additional capex on leverage ratios (both debt to debt-plus-equity and debt to EBITDA) in 2025

...November 14, 2024 This report does not constitute a rating action. PARIS (S&P Global Ratings) Nov. 14, 2024--S&P Global Ratings today said that Vonovia SE's (###+/Stable/A-2) third-quarter results will support its deleveraging trajectory as long as its new investments are mainly equity funded and EBITDA accretive. We further expect Vonovia to remain prudent and reach its own financial policy target of loan-to-value of 40%-45% in a timely manner, versus 47.9% as of Sept. 30, 2024. Higher capital expenditure (capex) but also more disposals than expected. The company announced 1 billion of additional capex in 2025. It also achieved 3 billion of disposals year-to- date, which is 1 billion more than our previous base-case expectation for 2024. The impact of additional capex on leverage ratios (both debt to debt-plus-equity and debt to EBITDA) in 2025 is therefore neutral in our base-case forecast, all other assumptions being equal. We continue to expect the ratios to be in the 57%-58% and 15x-17x...

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