Rating

Rating AgencyRating TypeRatingOutlook
S&Plong term ratingBBB+stable
S&Pshort term ratingA-2 
S&P Maalotlong term ratingiIAA+stable
S&P Maalotshort term ratingiIA-1+ 
Moody'slong term ratingBaa1stable

Grand City maintains investment-grade credit ratings from both Standard & Poor’s (S&P) and Moody’s Investors Service (Moody’s), with current long-term issuer ratings of BBB+ and Baa1, respectively. Additionally, S&P assigned GCP a short-term rating of A-2. The Company has a long-term goal of achieving an A-/A3 credit rating, an important component of its financial policy, and to that effect the Board of Directors has decided to implement policies, management and financial strategies to achieve that target.

Credit Rating Reports

Rating History

The Company has established a strong track record of achieving rating improvements owing to continuous improvements in its business and financial profile. In September 2017, Moody’s increased Grand City’s issuer rating to Baa1, noting the portfolio’s strong diversification, the Company’s strong credit metrics, high liquidity and financial flexibility, and strong access to capital markets. In November 2016, S&P increased the Company’s issuer rating for the 5th time in four years, to BBB+, owing to the Company’s strengthened position within its business risk profile.

Financial Policy

  • Strive to Achieve A- global rating in the long term
  • LTV limit at 45%
  • Debt to debt-plus-equity ratio at 45% (or lower) on a sustainable basis
  • Maintaining conservative financial ratios with a strong ICR
  • Unencumbered assets above 50% of total assets
  • Long debt maturity profile
  • Good mix of long term unsecured bonds and non-recourse bank loans
  • Maintaining credit lines from several banks which are not subject to Material Adverse Effect
  • Dividend of 65% of FFO I per share
Business risk profile
Financial risk profile
g
r
1
Minimal
2
Modest
3
Intermediate
4
Significant
5
Agressive
6
High Leveraged
1
Excellent
aaa/aa+
aa
a+/a
a-
bbb
bbb/bb+
2
Strong
aaa/aa+
a+/a
A-
Target

BBB+
Current
bbb
bb+
bb
3
Satisfactory
a/a-
bbb+
bbb/bbb-
bbb-/bb+
bb
b+
4
Feir
bbb/bbb-
bbb-
bb+/a
bb
bb-
b
5
Weak
bb+
bb+
bb/a
bb-
b+
b/b-
6
Vulnerable
bb-
bb-
bb-/a
b+
b
b-/bb+
Bremen
Bremen
Halle
Halle
Berlin
Berlin
Cologne
Cologne
Leipzig
Leipzig