Germany's largest residential property owner, Vonovia SE, is likely to strengthen its competitive position in Berlin, following its takeover bid on peer Deutsche Wohnen SE. The acquisition's funding will temporarily weaken Vonovia's credit metrics, but we expect these to remain commensurate with the rating level. We therefore affirmed our 'BBB+' long-term issuer credit 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 likely integrate Deutsche Wohnen and dispose a significant number of assets in the near term, with maintaining EBITDA interest coverage well above 2.4x and debt to debt plus equity at less than 60%. The stable outlook reflects our view that the combined
