REG-Aroundtown SA S&P downgrades Aroundtown’s credit rating to BBB stable from BBB+ negative

Aroundtown SAAnnouncement

Tue 09:30

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   Aroundtown SA (IRSH)
   S&P downgrades Aroundtown’s credit rating to BBB stable from BBB+ negative

   29-Apr-2025 / 10:16 CET/CEST
   The issuer is solely responsible for the content of this announcement.

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   THIS  ANNOUNCEMENT  IS  NOT  FOR  RELEASE,  PUBLICATION  OR  DISTRIBUTION,
   DIRECTLY OR INDIRECTLY, IN OR  INTO THE UNITED STATES, AUSTRALIA,  CANADA,
   JAPAN, SOUTH  AFRICA  OR ANY  OTHER  JURISDICTION  WHERE TO  DO  SO  WOULD
   CONSTITUTE A VIOLATION OF APPLICABLE LAWS OR REGULATIONS

   S&P DOWNGRADES AROUNDTOWN’S CREDIT RATING TO BBB STABLE FROM BBB+ NEGATIVE

   29 April 2025.

   Aroundtown (‘the Company’ or ‘AT’) announces the decision by Standard  and
   Poor’s (“S&P”) to downgrade Aroundtown’s  credit rating (the “Rating”)  by
   one notch to BBB  with a stable outlook.  Due to recent market  volatility
   and a weakening German economy, S&P believes this will slow AT’s  disposal
   activity  in  2025  which  will  slow  AT`s  deleveraging  progress.   S&P
   acknowledges AT’s deleveraging actions improved the debt to cap ratio from
   55.5% in March 2024 to 52.1% as of Dec 2024. However, in AT’s opinion, the
   negative market sentiment put pressure to take a rating action rather than
   giving the Company  additional time  to complete its  disposal plans.  The
   rating revision comes after the  Company maintained its rating  throughout
   the pandemic,  heightened  interest  rates  environment  and  geopolitical
   uncertainties, and follows a period of nearly two years where S&P  changed
   the outlook on the Company’s rating  to negative. As a result, the  credit
   rating of the Company’s bonds also decreases  by one notch to BBB and  its
   perpetual notes to BB+.

   AT acknowledges the decision  by S&P, but  notes the significant  progress
   made in strengthening the Company’s  financial position and improving  its
   credit metrics. Over the last years  Aroundtown has executed a wide  range
   of credit  enhancing measures  including disposals,  dividend  suspension,
   perpetual note exchanges  and liability management  exercises, which  have
   allowed AT to mitigate much of the negative impacts of the  macro-economic
   environment   on   the   Company.   However,   recent   geopolitical   and
   macro-economic  events  resulted  in  delays  in  the  execution  of  AT’s
   accretive disposal activity. The rating change resulted from S&P’s changed
   assessment of AT’s financial profile  by one category while the  Company`s
   business profile remained strong. AT believes that once market environment
   and German  economy will  improve, the  Company will  have more  tools  to
   restore its financial profile accretively.

   Going forward, the Company expects  that its highly diversified  portfolio
   with high embedded  upside potential  will continue  to drive  operational
   growth, offsetting  potential headwinds.  Furthermore, Aroundtown  remains
   committed to its conservative  financial profile (42%  LTV as of  year-end
   2024) and will continue to execute transactions which will be accretive to
   all stakeholders and will continue to maintain significant headroom to all
   its financial bond covenants. The Company expects that these measures,  as
   well as continued operational growth, will continue to support its  credit
   metrics under S&P’s methodology.

   About the Company

   Aroundtown SA  (symbol:  AT1),  trading  on  the  Prime  Standard  of  the
   Frankfurt Stock Exchange,  is the  largest listed  German commercial  real
   estate company. Aroundtown invests in income generating quality properties
   with value-add potential in central locations in top tier European  cities
   primarily in Germany, the Netherlands, and London.

   Aroundtown SA (ISIN: LU1673108939) is  a public limited liability  company
   (société anonyme)  established  under  the  laws of  the  Grand  Duchy  of
   Luxembourg, registered with  the Luxembourg Trade  and Companies  Register
   (Registre de Commerce et des  Sociétés, Luxembourg) under number  B217868,
   having  its  registered  office  at   37,  Boulevard  Joseph  II,   L-1840
   Luxembourg, Grand Duchy of Luxembourg.

   Contact

   Timothy Wright
   T: +352 288 313
   E:  1 info@aroundtown.de
    2 www.aroundtown.de

    

   DISCLAIMER

   THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION
   OF AN OFFER TO BUY ANY SECURITIES.

   THE SECURITIES MENTIONED IN THIS ANNOUNCEMENT HAVE NOT BEEN, AND WILL  NOT
   BE, REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS  AMENDED
   (THE SECURITIES ACT), AND MAY NOT BE OFFERED OR SOLD IN THE UNITED  STATES
   ABSENT REGISTRATION OR AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES
   ACT. THERE WILL  BE NO  PUBLIC OFFERING OF  THE SECURITIES  IN THE  UNITED
   STATES.

   THIS ANNOUNCEMENT IS  DIRECTED AT  AND IS  ONLY BEING  DISTRIBUTED IN  THE
   UNITED KINGDOM TO (I) PERSONS WHO HAVE PROFESSIONAL EXPERIENCE IN  MATTERS
   RELATING TO  INVESTMENTS FALLING  WITHIN ARTICLE  19(5) OF  THE  FINANCIAL
   SERVICES AND  MARKETS  ACT  2000 (FINANCIAL  PROMOTION)  ORDER  2005  (THE
   ORDER), (II) HIGH  NET WORTH ENTITIES,  AND OTHER PERSONS  TO WHOM IT  MAY
   OTHERWISE LAWFULLY BE COMMUNICATED FALLING WITHIN ARTICLE 49 OF THE ORDER,
   AND (III) PERSONS TO WHOM IT  MAY OTHERWISE LAWFULLY BE COMMUNICATED  (ALL
   SUCH PERSONS  TOGETHER  BEING  REFERRED  TO  AS  RELEVANT  PERSONS).  THIS
   COMMUNICATION MUST NOT BE READ, ACTED ON  OR RELIED ON BY PERSONS WHO  ARE
   NOT RELEVANT PERSONS. ANY INVESTMENT OR INVESTMENT ACTIVITY TO WHICH  THIS
   ANNOUNCEMENT RELATES IS  AVAILABLE ONLY  TO RELEVANT PERSONS  AND WILL  BE
   ENGAGED IN ONLY WITH RELEVANT PERSONS.

   IN MEMBER  STATES OF  THE  EUROPEAN ECONOMIC  AREA  (EEA) AND  THE  UNITED
   KINGDOM, THIS ANNOUNCEMENT AND ANY OFFER IF MADE SUBSEQUENTLY IS  DIRECTED
   ONLY AT  PERSONS  WHO ARE  “QUALIFIED  INVESTORS” WITHIN  THE  MEANING  OF
   REGULATION  (EU)  2017/1129,  AS   AMENDED  (THE  PROSPECTUS   REGULATION)
   (QUALIFIED INVESTORS). ANY  PERSON IN THE  EEA OR THE  UNITED KINGDOM  WHO
   ACQUIRES THE SECURITIES IN ANY OFFER (AN INVESTOR) OR TO WHOM ANY OFFER OF
   THE SECURITIES IS MADE WILL BE DEEMED TO HAVE REPRESENTED AND AGREED  THAT
   IT IS  A QUALIFIED  INVESTOR. ANY  INVESTOR WILL  ALSO BE  DEEMED TO  HAVE
   REPRESENTED AND AGREED  THAT ANY SECURITIES  ACQUIRED BY IT  IN THE  OFFER
   HAVE NOT BEEN  ACQUIRED ON  BEHALF OF  PERSONS IN  THE EEA  OR THE  UNITED
   KINGDOM OTHER  THAN  QUALIFIED INVESTORS,  NOR  HAVE THE  SECURITIES  BEEN
   ACQUIRED WITH A VIEW  TO THEIR OFFER  OR RESALE IN THE  EEA OR THE  UNITED
   KINGDOM  TO  PERSONS  WHERE  THIS  WOULD  RESULT  IN  A  REQUIREMENT   FOR
   PUBLICATION BY AROUNDTOWN OR ANY OF THE MANAGERS OF A PROSPECTUS  PURSUANT
   TO ARTICLE 3 OF THE PROSPECTUS REGULATION.

   THIS ANNOUNCEMENT MAY CONTAIN PROJECTIONS  OR ESTIMATES RELATING TO  PLANS
   AND OBJECTIVES RELATING TO OUR  FUTURE OPERATIONS, PRODUCTS, OR  SERVICES,
   FUTURE FINANCIAL RESULTS,  OR ASSUMPTIONS  UNDERLYING OR  RELATING TO  ANY
   SUCH STATEMENTS,  EACH OF  WHICH CONSTITUTES  A FORWARD-LOOKING  STATEMENT
   SUBJECT TO RISKS AND UNCERTAINTIES, MANY  OF WHICH ARE BEYOND THE  CONTROL
   OF AROUNDTOWN SA. ACTUAL RESULTS  COULD DIFFER MATERIALLY, DEPENDING ON  A
   NUMBER OF FACTORS.

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   Dissemination of a Regulatory Announcement, transmitted by EQS Group.
   The issuer is solely responsible for the content of this announcement.

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   ISIN:          LU1673108939, LU1673108939, XS2114459550, XS1508392625,
                  XS1634523754, XS1752984440, XS2017788592, XS2027946610,
                  XS2055106210, XS2287744721, XS1586386739, XS1639847760,
                  XS1649193403, XS1700429308, XS1715306012, XS1753814141,
                  CH0398677689, XS1761721262, XS1815135352, AU3CB0252955,
                  CA04269KAA12, XS1879567144, XS1877353786, XS1901137106,
                  XS1905592546, CH0460054437, XS1961042915, XS1964701822,
                  XS1966277748, XS1980255779, XS1999746370, XS2023872174,
                  XS2023873149, XS2198981263, XS1843435501, XS2273810510,
                  XS2421195848, XS2799494120, XS2799493825, XS2812484728,
                  XS2812484215, XS2860457071
   Category Code: MSCL
   TIDM:          IRSH
   LEI Code:      529900H4DWG3KWMBMQ39
   Sequence No.:  385386
   EQS News ID:   2126634


    
   End of Announcement EQS News Service

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References

   Visible links
   1. mailto:info@aroundtown.de
   2. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=297cc9a7a72fca4905b7f9b22c5861be&application_id=2126634&site_id=reuters~~~6aa99418-46f7-48b9-89fd-959a8d2e4912&application_name=news


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