Germany-based residential property company Deutsche Annington Immobilien SE (DAI) owns and manages a portfolio of 180,000 apartments and single-family homes. We assess DAI's business risk profile as "strong," reflecting the stability of the German residential market, and the track record of stable operating performance of DAI's large and well-spread portfolio. We assess DAI's financial risk profile as "significant," because the company generates stable recurring cash flows and, in our view, should deleverage and benefit from a higher level of unencumbered assets after a proposed IPO and debt refinancing. We are assigning our preliminary 'BBB' long-term corporate credit rating to DAI. The stable outlook reflects our forecast of stable cash flow generation thanks to favorable macroeconomic and competitive conditions for DAI's
