German residential property company Deutsche Annington Immobilien SE (DAI) closed its acquisition of Gagfah SA. We believe the transaction markedly improves DAI's scale and diversity, and we expect the company to maintain leverage and cash flow metrics near the current levels. We are therefore raising our long-term rating on DAI to 'BBB+' from 'BBB' and raising our issue ratings on DAI's senior unsecured and subordinated hybrid debt instruments by one notch. The outlook is stable, reflecting our view that DAI should maintain EBITDA interest coverage above 1.8x, and debt to debt plus equity below 60%, over the next 24 months. On March 10, 2015, Standard&Poor's Ratings Services raised its long-term corporate credit rating on Deutsche Annington Immobilien SE
