Icade's office portfolio fundamentals have failed to improve meaningfully and sustainably and remain below par, reflected by relatively higher vacancy rates and negative rental reversion, in contrast with other office REITs in Europe operating in more central locations. In addition, the volumes and margins of its development activities continue to be strained, with only limited recovery likely over the next two years. We therefore lowered to'BBB-'from'BBB'our ratings on Icade S.A. and its unsecured debt to reflect this weaker business position. At the same time, we lowered our short-term issuer credit rating to'A-3'from'A-2'. The stable outlook indicates that we expect the company to continue experiencing subdued operating performance, however this will remain in line
