Citycon has two investment grade credit ratings.
|Rating agency||Long-term corporate credit rating
||Outlook||Since||Latest change in rating||Latest report|
|Standard & Poor's
||BBB||Negative||10 May 2013
||9 July 2014||
SP Credit Opinion Update 13 February 2018
||Baa1||Negative||16 May 2013||15 January 2016||Moody's Credit Opinion Update 26 July 2017|
Standard & Poor's
"S&P Global Ratings' revised outlook on Citycon to negative following the continued weakness in Citycon's operating performance in Finland. The currently high density of shopping centers (ratio of retail space per inhabitant) and increasing competition in the Nordic region and particularly in Finland are the main risks for Citycon. At the same time, we believe that Citycon's business risk profile is supported by the company's diversification across the Nordic region, by positive demographics (fast-growing populations and urbanization trend) and economic trends (strong GDP growth and sound consumer confidence) in its key markets. Citycon's strengths also include its focus on the retail property segment, which we typically view as less volatile than offices or logistics, and its low exposure to risky development activities, mainly consisting of the renovation and extension of existing assets for less than 15% of its total portfolio value."
"Citycon’s Baa1 long term issuer rating primarily reflects (i) its focus on urban, necessity-driven retail properties in strong and growing metropolitan locations in highly rated countries, (ii) the geographic diversification of its property portfolio across Finland (Aa1 stable), Norway (Aaa stable) and Sweden (Aaa stable), (iii) its good market positions and franchise value in the Nordics’ shopping center market and (iv) a fully unencumbered asset base and good access to capital despite presence of a dominant shareholder."