A3 rating for Swiss Prime Site
The rating agency Moody's has given Swiss Prime Site a long-term issuer rating of "A3" with a stable outlook.
According to CEO René Zahnd, the rating "expresses Moody's conviction that the Swiss Prime Site Group is financially and strategically sound as a comprehensive real estate investment platform". Marcel Kucher, CFO of Swiss Prime Site, adds that the rating is very positive in Switzerland and in international comparison, and opens up opportunities to raise debt capital internationally if required.
In order to receive an A3 rating, various criteria have to come together. According to Swiss Prime Site, four key elements were decisive. First, the real estate portfolio is of very high quality and, with a size of over CHF 12.5 billion, is broadly diversified in terms of regional distribution and types of use. Second, with strong macroeconomic fundamentals and stable real estate markets, Switzerland offers the real estate company a solid operating environment and good access to debt and equity. Thirdly, the enrichment of the business model with real estate asset management offered great potential in the medium and long term, and fourthly, Swiss Prime Site had achieved considerable financial flexibility with its new financing structure and "capital recycling" strategy. The unencumbered asset base of over 80%, the good liquidity and an average remaining term of interest-bearing financial liabilities of 5.8 years were also viewed positively. (ah)
