ADO Properties' rating adjusted by S&P
 

Luxembourg, 23 April 2020 - ADO Properties S.A. ("ADO" or the "Company") received notice from S&P Global Ratings ("S&P") that its rating has been adjusted from BBB- to BB with stable outlook with immediate effect.

S&P fundamental analysis of the business risk profile remains unchanged and was moved to the better end of its satisfactory category. S&P's anchor score is BBB- based on ADO's financial position and financing policy, the quality of ADO's portfolio and the strong fundamentals of the German residential market. The Company has received further confirmation of its adequate liquidity position. The unsecured bonds of ADLER Real Estate Aktiengesellschaft ("ADLER") have been rated BB+ separately by S&P as per today, which is one notch above the new corporate rating of ADO. ADO bonds are not rated by S&P and are therefore unaffected by the adjusted rating.

ADO's corporate rating has been adjusted down by a notch due to perceived execution risk related to the combination with ADLER, including the announced rights issue also target to lower the net debt to annualized EBITDA ratio, and by an additional notch due to the perceived uncertainty with respect to integration and achieving related goals in a timely manner. These are both qualitative aspects and, as they are part of the company's strategy, they will be executed.

ADO will publish Q1 2020 figures next month in which a further update will be given on the progress of the integration which started on 9 April 2020 and which is proceeding exactly as planned. New board members are to be appointed at the annual general meeting continuing a decisive vote for independent members (5 out of 8 non-executives) and all committees being chaired by independent members. As announced with the publication of financial year 2019 figures, ADO will execute the rights issue once capital markets have stabilized.