German Residential Property Vonovia 'BBB+/A-2' Ratings Affirmed On Buwog Takeover Bid; Outlook Stable

German large residential property owner Vonovia has announced its intention to acquire its peer, Buwog, through a €5.3 billion cash transaction. The acquisition's funding will temporarily weaken Vonovia's credit metrics, but to levels that remain acceptable for the current rating. We are therefore affirming our 'BBB+/A-2' ratings on Vonovia and our 'BBB-' rating on its subordinated debt. The stable outlook reflects our view that Vonovia will likely successfully integrate Buwog while maintaining EBITDA interest coverage above 2.0x and debt-to-debt plus equity at less than 60%. PARIS (S&P Global Ratings) Dec. 19, 2017--S&P Global Ratings today affirmed its 'BBB+/A-2' long- and short-term corporate credit ratings on German residential property company Vonovia SE. The outlook is stable. At the same time, we

...+ German large residential property owner Vonovia has announced its intention to acquire its peer, Buwog, through a 5.3 billion cash transaction. + The acquisition's funding will temporarily weaken Vonovia's credit metrics, but to levels that remain acceptable for the current rating. + We are therefore affirming our '###+/A-2' ratings on Vonovia and our '###-' rating on its subordinated debt. + The stable outlook reflects our view that Vonovia will likely successfully integrate Buwog while maintaining EBITDA interest coverage above 2.0x and debt-to-debt plus equity at less than 60%. PARIS (S&P Global Ratings) Dec. 19, 2017--S&P Global Ratings today affirmed its '###+/A-2' long- and short-term corporate credit ratings on German residential property company Vonovia SE. The outlook is stable. At the same time, we affirmed our '###+' issue rating on the group's senior unsecured debt and '###-' issue rating on the group's subordinated debt. The affirmation follows Vonovia's announcement of a...

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