Citycon Oyj Investor News 11 March 2025 at 18:30 hrs
On 11 March 2025 S&P Global Rating published that it has decided to maintain the issue rating on Citycon’s unsecured notes (bonds) at the investment grade rating of BBB- and to downgrade Citycon Oyj’s issuer credit rating from BBB- (negative) to BB+ (stable).
“S&P has decided to downgrade Citycon’s issuer credit rating despite our strong liquidity position, improved operational performance and the credit positive actions Citycon has taken. Citycon’s portfolio consists of high performing, necessity-based retail assets in the Nordic and Baltic countries. I would like to highlight Citycon’s strong operational performance, as also noted by S&P in their report, including over 95% retail occupancy rate, increasing average rents and continuously growing tenant sales and net rental income. However, the fair value decline of our assets due to macroeconomic headwinds have led to a weakening of our balance sheet related credit metric (Debt / Debt + Equity) above S&P’s downgrade threshold. We will continue a dialogue with key stakeholders including S&P to demonstrate our resilience and effectiveness of our operations”, stated Oleg Zaslavsky, CEO of Citycon.
The credit rating downgrade does not have any direct impact on Citycon’s operational performance. Citycon is well positioned related to managing its liquidity as the maturity profile is laddered with no near-term maturing debt, the next bond maturing in September 2026, Citycon has robust liquidity position and committed, substantial unutilised credit facilities. Further, all Citycon’s bonds have fixed coupons with no coupon step-ups resulting from the credit rating downgrade.
CITYCON OYJ
For further information, please contact:
Eero Sihvonen
Chief Financial Officer
Telephone +358 50 557 9137
eero.sihvonen@citycon.com
Citycon is a leading owner, manager and developer of mixed-use real estate featuring modern, necessity-based retail with residential, office and municipal service spaces that enhance the communities in which they operate. Citycon is committed to sustainable property management in the Nordic region with assets that total approximately EUR 3.7 billion. Our centres are located in urban hubs in the heart of vibrant communities with direct connections to public transport and anchored by grocery, healthcare and other services that cater to the everyday needs of customers.
Citycon’s shares are listed on Nasdaq Helsinki Ltd.
www.citycon.com