A rapid rise in interest rates has led to an industrywide decline in commercial real estate (CRE) transactional activities, including capital markets and advisory leasing. This has resulted in weaker-than-expected credit metrics for CBRE Group Inc. (CBRE). We now expect leverage, measured as net debt to EBITDA, to increase above 1.5x on a sustained basis, higher than our original expectation. We therefore revised our outlook to stable from positive and affirmed our 'BBB+' issuer credit rating. The stable outlook reflects our expectation that CBRE will maintain leverage of 1.5x-2x as it sustains its leading market position in CRE services and continues expanding its project, property, and facilities management businesses. While we expect to view CBRE's business more favorably if acquired
