Fitch Ratings Ltd. rating on IGD

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.

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

corporate rating
negative rating watch
22 October 2019
date of first release
8 April 2020
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.

S&P Global Ratings rating

Corporate rating
23 April 2019
Date of first release
23 March 2020
Date of latest update

Moody’s rating on IGD

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.

On 8 April 2020 Moody’s placed IGD’s rating under review for downgrade and the outlook went from stable to rating under review. The factors that could lead to downgrade should be found in the outbreak of the global emergency from COVID-19: the retail real estate segment, in which IGD operates, has been one of the sector more affected by the measures adopted to contain coronavirus. During the rating review process Moody’s will focus on 4 factors:

  • the extent of business interruptions on IGD’s operations;
  • a review of the expected impact on the retail industry in general, considering governmental and policy support;
  • IGD’s actions;
  • the success of the company in terming out its liquidity profile.

Moody's Rating

Corporate rating
rating under review
17 May 2016
Date of first release
8 April 2020
Date of latest update