Canary Wharf Debt Downgrade Is Latest Sign of Real Estate Woes - Bloomberg
Moody’s has downgraded debt issued by owner of London’s Canary Wharf neighborhood, the latest sign of the difficulties facing real estate globally.
The financial district in the east of the capital, owned by Brookfield Asset Management Inc. and Qatar’s sovereign wealth fund, has more than £1.4 billion of debt coming due in 2024 and 2025. The company would probably be highly reliant on asset sales, and potentially shareholder support, to help it de-leverage and refinance, Moody’s said.
The ratings firm downgraded Canary Wharf Group Investment Holdings Plc to Ba3 from Ba1 previously, according to Tuesday’s statement, citing the “difficult operating and funding environment for real estate companies” that it expects to persist for at least the next year.
The landlord did not immediately reply to a request for comment. Its £300m bond due for repayment in 2028 is currently being quoted at 68.7 pence in the pound.
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