Research Update: Czech Republic-Based Logistics Real Estate Company CTP B.V. Assigned 'BBB-' Preliminary Rating; Outlook Stable

CTP B.V. is the fifth-largest logistics property company in Europe and the largest in Central and Eastern Europe (CEE), based on gross leasable area of 5.8 million square meters (sq m) as of June 30, 2020. Its operations are focused on the top-five CEE countries (Czech Republic, Romania, Poland, Hungary, and Slovakia), where it enjoys strong market share. We expect demand for CTP's properties to remain high, supported by the company's good asset quality and increasing e-commerce tailwinds. The company intends to move gradually toward an unsecured capital structure, and accordingly plans to issue an unsecured bond of benchmark size, where part of the proceeds would be used toward the refinancing of existing secured debt. Therefore, we are assigning our

...- CTP B.V. is the fifth-largest logistics property company in Europe and the largest in Central and Eastern Europe (CEE), based on gross leasable area of 5.8 million square meters (sq m) as of June 30, 2020. Its operations are focused on the top-five CEE countries (Czech Republic, Romania, Poland, Hungary, and Slovakia), where it enjoys strong market share. - We expect demand for CTP's properties to remain high, supported by the company's good asset quality and increasing e-commerce tailwinds. - The company intends to move gradually toward an unsecured capital structure, and accordingly plans to issue an unsecured bond of benchmark size, where part of the proceeds would be used toward the refinancing of existing secured debt. - Therefore, we are assigning our '###-' preliminary long-term issuer credit rating to CTP B.V. and our '###-' preliminary issue rating to its proposed senior unsecured bond. - The stable outlook indicates that CTP's portfolio should continue to generate stable rental...

Research Update