Citycon has three investment grade credit ratings.
|Rating agency||Long-term corporate credit rating
||Outlook||Since||Latest change in rating||Latest report|
|Fitch||BBB-||Stable||26 May 2020||26 May 2020||Fitch Credit Opinion Update 19 May 2021|
|Standard & Poor's
||BBB-||Stable||10 May 2013
||22 June 2021||SP Credit Opinion Update 22 June 2021
||Baa3||Stable||16 May 2013||25 May 2021||Moody's Credit Opinion Update 25 May 2021|
"The credit rating affirmation reflects Citycon's operational performance, which has been better than many European peers' during the Covid-19 pandemic. Rent collection rates have remained high, above 95% in 2020 (1Q21: 92%) as have occupancy rates (1Q21: 94%), while rental relief granted to tenants has been manageable. Its rental income resilience is linked to its exposure to necessity-based and some public- sector tenants, the Nordic governments' comprehensive support for tenants, less severe lockdowns imposed and its exposure to Nordic consumers."
Standard & Poor's
"The stable outlook reflects our view that the company should be able to maintain a debt-to-debt-plus-equity ratio close to 50% over the next 12-24 months. We also anticipate debt to EBITDA returning to 10x-11x and EBITDA interest coverage to 2.7x-3.0x over that period. Furthermore, we expect Citycon's operating performance will continue to stabilize with improving footfall numbers and tenants' sales as the Nordic economies recover."
"Moody's affirmed the Baa3 long-term issuer rating and changed the outlook to stable because of Citycon's exposure to Nordic countries that have been less affected by severe lockdown measures compared to many other countries in Europe. In general, shopping centers have remained open with adjusted opening hours. The Swedish and Norwegian governments have put in place relief programs, partially covering fixed costs of tenants that have experienced lower sales in harder hit sectors such as hotels, restaurants and retail.Additionally, we estimate that Citycon has been able to collect an average of close to 95% of rent for each quarter during the pandemic. One key factor supporting outperformance against peers is that Citycon has benefitted from grocery store anchor tenants but also other necessity shopping such as health care, dentists, pharmacies and cosmetics -- accounting for about 35% of net rental income, which has proven to support footfall and tenant sales in its centres"