Germany-based residential property company Deutsche Annington Immobilien SE (DAI) has raised €400 million from an IPO, issued €1.3 billion of new senior unsecured notes, and drawn €1 billion of its term loan to repay secured debt. We assess DAI's financial risk profile as "significant" and its business risk profile as "strong." We are assigning our 'BBB' long-term and 'A-2' short-term corporate credit ratings to DAI and our 'BBB' issue rating to the senior unsecured notes issued by DAI's funding arm Deutsche Annington Finance B.V. The stable outlook reflects our forecast of stable cash flow generation thanks to favorable macroeconomic and competitive conditions for DAI's residential rental portfolio, and our forecast of a stable capital structure following the IPO and refinancing.
