S&P Downgrades Klepierre to BBB+ With Stable Outlook Amid Operating Pressures
S&P Global Ratings on Thursday downgraded Klepierre's () issuer credit rating to BBB+ from A-, with a stable outlook, on the back of operating pressures from store closures.
The rating agency said European retail landlords such as French real estate investment trust Klepierre could experience lower occupancy rates and organic growth in the long term due to the pandemic's lasting effect on retailers.
While S&P noted that Klepierre's large and prime shopping centers in major European cities could continue to attract top international retailers and footfall, the agency nevertheless said it believes the overall revenue resilience and cash flow predictability of the company could weaken in the long term.
Meanwhile, S&P said the stable outlook assumes a progressive ramp-up of vaccination in Europe and a stabilization of the company's operating performance by 2022.
Klepierre's stock fell by over 2% recently.