The performance of Icade's offices portfolio continues to be below par with high vacancy and negative rental reversion, while other office REITs in Europe operating in more central locations have seen an improvement in the past quarters. In addition, volumes and margins of its development activities continue to be under pressure with limited recovery likely over the next two years. We therefore revised our outlook on Icade to negative from stable and affirmed our 'BBB' long-term issuer credit and issue ratings on the group and its unsecured debt, as well as our'A-2' short-term issuer credit rating. The negative outlook indicates that we could lower the ratings if Icade does not recover from the deteriorating operating performance of its property development
