...December 17, 2021 - Germany-based residential property company Vonovia recently announced the acquisition of 87% of Deutsche Wohnen's shares and the success of its 8 billion equity raise, which is enough to maintain ratios commensurate with our '###+' rating on the company. - Now that Vonovia has reached a significant size (91.5 billion) with limited impact on its balance sheet and no more execution risks, we believe further deleveraging could lead to a positive rating action, but only if the company manages to dispose significant noncore assets and limit debt-funded acquisitions in the short to medium term. - We therefore revised our outlook on Vonovia to positive from stable, and affirmed our '###+' long-term issuer credit rating on the company. - We could take a positive rating action if Vonovia reduces debt leverage more than we currently expect over the next 24 months, such that its debt-to-debt plus equity falls sustainably below 55% while its debt-to-EBITDA returns to historical...
