(Alliance News) - Moody's Investors Service has on Monday confirmed the Baa3 issuer rating and the Baa3 senior unsecured ratings of shopping centre owner Hammerson PLC.
The outlook has been changed to negative from ratings under review.
This rating action concludes the review for downgrade that began on April 8.
Hammerson's Baa3 rating confirmation is supported by the prime quality of its flagship retail destination portfolio in the UK, with good tenant diversification and long lease maturities. Moody's said. The rating also is backed by Hammerson's good geographical diversification across multiple countries and various retail property formats and by its significant financial flexibility from well-staggered debt maturities.
On the other hand, the negative outlook reflects the ongoing effect of the coronavirus outbreak on Hammerson's operating performance, and currently weak investment markets that make it challenging for the company to dispose of further property assets, the ratings agency said.
Going forward, Moody's said positive rating pressure could develop if the company posts sustainable and consistently strong operating performance including positive rental growth and stable asset values.
The ratings could be downgraded, however, if Moody's expects a high level of retailer distress to translate into sustained weakened credit quality.
Hammerson shares were trading 0.7% higher in London on Monday at 19.96 pence each, while in Johannesburg, the stock was up 1.0% at ZAR4.23 a share.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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Hammerson (HMSO)