S&P Downgrades Aroundtown's Credit Rating Amid Economic Concerns

Standard and Poor’s (S&P) has downgraded Aroundtown S.A.'s credit rating from BBB+ negative to BBB stable. This decision comes as a response to recent market volatility and a weakening German economy, which are expected to slow Aroundtown’s asset disposal activities in 2025. While Aroundtown improved its debt-to-capital ratio from 55.5% to 52.1% in 2024, S&P expressed concerns about the company’s deleveraging progress.

Aroundtown has been active in enhancing its financial profile through disposals, dividend suspensions, and liability management, mitigating some negative impacts of macroeconomic conditions. Despite this, geopolitical events have delayed their strategic plans. The firm is confident that its diversified portfolio will sustain operational growth, while maintaining a conservative financial strategy with a 42% loan-to-value ratio. These measures are expected to support its financial metrics in the future.