Moody’s Investors Service has upgraded the corporate credit rating of Peach Property Group AG, a real estate company focused on investing in and managing rental properties in Germany, to “Ba2” with a stable outlook. The rating for subordinated, unsecured bonds of Peach Property Group was also raised by Moody’s from “Ba3” to “Ba2”.
The upgrade of the corporate rating reflects the significant corporate growth of Peach Property Group, a lower leverage ratio and a more conservative financial policy. Moody’s points to Peach Property Group’s significantly increased property portfolio via acquisitions, as well as improved target annual rental income and higher market value of the portfolio. This is complemented by a good track record of integrating acquisitions into its operating platform, while continuing to generate strong operating metrics. The rating agency also highlights the improved leverage target.
Dr Thomas Wolfensberger, CEO of Peach Property Group AG, commented: “The recent upgrade by Moody’s, following on from S&P and FitchRatings, underlines the solidity of our financial profile and the strength of our operating platform. We are thus well positioned for further, value-creating growth steps.”
“The rating upgrade marks another important step on our path to continuously further reduce financing costs. In view of the upcoming refinancing of our outstanding unsecured corporate bonds, this will enable us to reduce future interest expenses,” added Thorsten Arsan, Chief Financial Officer of Peach Property Group AG.
