Fitch Ratings Ltd. (“Fitch”) has assigned IGD a long-term issuer default rating of “BBB-” with a stable outlook; the opinion of the rating agency reflects a stable rental income profile, that benefits from high occupancy rates and leverage metrics that improved over the past four years. In its credit opinion, Fitch also highlighted the good location of IGD’s shopping malls, the effective merchandising mix with well-known domestic and international quality tenants and a balanced combination of hypermarkets, small and medium retailers, services and food courts.
The rating obtained by Fitch is currently the second one in the investment grade area attributed to IGD after that of S&P Global Ratings.
S&P Global Ratings released for the first time its credit opinion on IGD on 23 April 2019. The opinion of the rating agency reflects the acknowledgement of the portfolio’s quality and operating performances, the solid financial structure and the prudent strategy in place for the next three years which is focused on asset management, the disposal of non-strategic assets and the commitment to reducing the Loan-to-Value below 45%. The stable outlook also reflects S&P Global Ratings’ view that IGD will likely continue to generate stable and predictable cash flows.
IGD’s solid creditworthiness, confirmed by the investment grade BBB- rating granted, will allow the company to continue to access the debt capital markets at more favorable conditions than in the past.
On 23 August 2019, following the publication of the results for the first half of 2019, S&P Global Ratings confirmed the BBB- rating, but revised the outlook from stable to negative, due to the challenging context of the retail sector, to weaker performance operating in the half year and to the pressure on the estimates that could impact on the leverage ratios.
Moody’s released for the first time its credit opinion on IGD’s long term debt on 17 May 2016. On 21 December 2017, thanks to the positive performance recorded throughout the year, Moody’s confirmed the rating Baa3 on our debt with a stable outlook: this allow us to access to the debt capital markets at conditions aligned to those of issuers with the best creditworthiness. On 30 May 2018, following the decision of evaluating the possibility to downgrade Italy,s sovereign rating, Moody’s change its outlook for IGD from stable to negative.
On 9 April 2019 Moody’s decided to decrease the rating to Ba1 with stable outlook due to the potential negative impact in the future of the current Italian macroeconomic conditions, with respect to both the real estate sector in which the Company operates (retail) and exogenous factors. At the same time, Moody’s confirmed its positive opinion of the results the Company achieved in 2018 which testify to the management’s ability to ensure solid and stable results over time, the cornerstone of the Company’s fundamentals. On 2 July 2019, Moody’s carried out a periodic review of the rating, maintaining its judgment unchanged.