Research Update: Czech Republic-Based Logistics Real Estate Company CTP B.V. Assigned 'BBB-' 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 issued its inaugural €650 million 2.125% unsecured bond on Sept. 24, 2020. Part of the proceeds will be used to refinance existing secured debt. We are assigning our 'BBB-' long-term

...- 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 issued its inaugural 650 million 2.125% unsecured bond on Sept. 24, 2020. Part of the proceeds will be used to refinance existing secured debt. - We are assigning our '###-' long-term issuer credit rating to CTP B.V. and our '###-' issue rating to its senior unsecured bond. - The stable outlook indicates that CTP's portfolio should continue to generate stable rental income over the next 12-24 months, thanks to robust...

Research Update