We believe German residential property company Vonovia SE is likely to issue new equity and significantly strengthen its competitive position in Berlin, following its acquisition offer on its peer, Deutsche Wohnen. We are therefore affirming our 'BBB+' long-term rating on Vonovia and our ratings on its senior unsecured and subordinated hybrid debt instruments. The stable outlook reflects our view that the company will maintain its plan to materially reduce its asset encumbrance, while maintaining EBITDA interest coverage above 1.8x and debt-to-debt plus equity of less than 60%. On Oct. 15, 2015, Standard&Poor's Ratings Services affirmed its 'BBB+/A-2' long- and short-term corporate credit ratings on German property company Vonovia SE. The outlook is stable. At the same time, we
