Atrium European Real Estate Limited
EANS-News: Atrium European Real Estate Limited
CREDIT RATING UPDATE
St Helier Jersey / Channel Islands (euro adhoc) -
Corporate news transmitted by euro adhoc. The issuer/originator is solely responsible for the content of this announcement.
Company Information
CREDIT RATING UPDATE
Jersey, 31 January 2011. Atrium European Real Estate Limited
("Atrium" or the "Company") (VSE/ Euronext: ATRS), one of the
leading real estate companies focused on shopping centre
investment, management and development in Central and Eastern
Europe, notes Standard and Poor´s ("S&P") announcement placing
Company's current 'BB' long-term and 'B' short-term corporate credit
ratings on CreditWatch Negative. S&P had previously upgraded
the Company´s long-term corporate credit rating to `BB´ from `BB-`
with a Stable outlook and affirmed Atrium´s Short-term rating as
`B´ on 26 November 2010.The Company notes that the CreditWatch Negative is not a comment
of Atrium's underlying real estate business with S&P stating
that "Atrium's operating performance has improved over the past
12 months, as a result of higher occupancy rates and a long
lease maturity profile (about five years), which have led to
improvements in its operating margins" and that "Atrium's capital
structure has, in our view, strengthened through the combined
effect of deleveraging and operating efficiency, resulting in a
ratio of funds from operations to debt of over 11%". The
CreditWatch reflects S&P's concerns about the potential effects of
the ongoing, complex litigation with Meinl Bank ("Meinl") which
S&P believes "could have an adverse bearing on Atrium's credit
quality". It is also because the Company did not provide S&P with
information regarding a withheld payment of a de minimus amount
of interest due on EUR20 million nominal value of its 2008
10.75% Convertible bond (the "Meinl Bond"), a private and unrated
bond issued to Meinl.Atrium did not provide disclosure of this non-payment to S&P as the Company did not consider that such a disclosure was required because of the private nature of the Meinl Bond and because the interest due on the Meinl Bond had been legitimately withheld, reflecting as it does a matter under bona fide commercial dispute, pending the outcome of a EUR2 billion legal action for compensation and damages filed against Julius Meinl, Meinl Bank and other defendants in August 2010, which the Company will pursue vigorously, as well as other disputes.
S&P has stated that it intends to review the CreditWatch placement in 90 days, during which time Atrium will meet with S&P to listen to its concerns in more detail and use its best endeavours to ensure that the CreditWatch Negative is lifted as soon as possible.
For further information:
Financial Dynamics: +44 (0)20 7831 3113 Richard Sunderland Laurence Jones Will Henderson richard.sunderland@fd.com
end of announcement euro adhoc
Further inquiry note:
Financial Dynamics, London
Richard Sunderland / Laurence Jones
Phone: +44 (0)20 7831 3113
mailto:richard.sunderland@fd.com
Branche: Real Estate
ISIN: JE00B3DCF752
WKN:
Index: Standard Market Continuous
Börsen: Wien / official market