Ratings

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- Negative  10 May 2013
 
22 September 2020 SP Credit Opinion Update 22 September 2020​
 
Moody's
 
Baa3 Stable 16 May 2013 25 May 2021 Moody's Credit Opinion Update 25 May 2021

Fitch
"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 outlook revision reflects our view of increasing risks to the company's operating performance and financial risk profile, due to challenging market conditions. We believe Citycon's credit metrics may weaken toward the low end of the range commensurate with the ratings over the next 12-24 months. This is due to ongoing soft trading conditions, increasing yields in the Nordic retail sector, and uncertainties regarding planned asset disposals.”

“That said, we still regard Citycon's business risk profile as satisfactory and note that leasing spreads are improving, particularly in Sweden and Norway. Also, in our view, Citycon's efforts to strengthen asset management has led to a more diverse client base than several peers'. We continue to believe that Citycon's focus on redeveloping and extending its largest shopping centers should enhance its business risk profile over the medium term. This is because well-located retail assets with high footfall generate more sustainable demand from retailers.”

Moody’s

"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"