Fitch Ratings Ltd. rating on IGD

On 22 October 2019 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.

On 8 April 2020, Fitch confirmed the “BBB-“ rating to IGD, but, following the global epidemiological emergency from COVID-19, the Agency placed its rating in a Negative Rating Watch condition. This condition reflects the risk of a negative impact on IGD’s rental income caused by the extended coronavirus containment measures in Italy (closure of non-essential retail shops), as many tenants may face liquidity issues.

On 1st October 2020 Fitch Ratings Ltd. confirmed the BBB- investment grade rating with negative outlook removing it from Rating Watch Negative: “The rating assigned reflects the rent collection rates which were higher than what Fitch estimated at the beginning of April, together with the commercial strategy adopted that favors rents deferrals instead of rent discounts and waivers, providing improved visibility on IGD’s rental income.”

On 30th September 2021 Fitch Ratings Ltd. has revised IGD’s Outlook to Stable from Negative, while affirming the company’s Long-Term Issuer Default Rating (IDR) and senior unsecured ratings at ‘BBB-‘. The Stable Outlook is predicated on the better visibility over the rental income, aided by a gradual recovery in consumer footfall and tenants’ sales in IGD’s shopping centres. This should help IGD restore its net debt/EBITDA to below 10.0x in the next 12 months. The affirmation of the rating reflects IGD’s improving operating performance, which Fitch Ratings expect to recover to pre-pandemic levels by end-2022. Rental levels on renewals and new leases in 1H21 were marginally down 1% while the occupancy rate remained strong at over 94% on IGD’s Italian malls. IGD’s portfolio is composed of shopping centres mostly dominant in their catchment area that are convenience and grocery-led (COOP-anchored) with a varied range of services (pharmacies, dental clinics, tobacco shops, health and beauty salons).

For the complete Rating Action Commentary please visit the following link on Fitch Ratings’ website.

The rating obtained by Fitch is currently the only one in the investment grade area attributed to IGD.

corporate rating
30 September 2021
Date of latest update

S&P Global Ratings rating on IGD

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, after the pubblication of the 1H 2019 results, S&P Global Ratings confirmed the BBB- rating, but reviewd IGD’s outlook from stable to negative due to the challenging environment of the retail sector, to the weaker half-year operating performance and to the pression on evaluations that could impact on the financial leverage.

On 23 March 2020, following the COVID-19 health emergency, S&P Global Ratings downgraded IGD to BB+, confirming the negative outlook, due to the challenging Italian retail environment and measures taken in response to the COVID-19 pandemic, that could negatively impact on the operating performance and consequently on the estimates and on the leverage ratios, but recognizing the company’s robust liquidity profile.

On 22 April 2021, S&P Global Ratings updated the data relating to IGD following the publication of the results as at 31 December 2020, confirming the rating at BB+ and the negative outlook.

On 8 December 2021 S&P Global Ratings, following the successful disposal of non-strategic stand-alone hypermarkets and supermarkets, confirmed the rating at BB+ and upgraded the outlook from negative to stable.

S&P Global Ratings rating

Corporate rating
8 December 2021
Date of latest update