...- Vonovia's third-quarter results were strong and show performance within our base-case expectations, but we believe the company will face tougher market conditions next year, including more difficult asset sales, probable revaluations losses, and significantly higher costs for refinancing debt. - As a result, its S&P Global Ratings-adjusted debt-to-debt plus equity and EBITDA-to-interest ratios should be weaker than anticipated, and we no longer think that they could materially exceed our previous deleveraging expectations by year-end 2023. Although debt to EBITDA should gradually improve, it will likely remain too high for a higher rating. - We therefore revised our outlooks on Vonovia and its core subsidiary Deutsche Wohnen to stable from positive, and affirmed the '###+/A-2' ratings on both entities. - The stable outlooks reflect our view that the group will continue generating robust rental growth, supported by strong housing undersupply in Germany, while allocating more cash flow...
