18 October 2018 – Expansión
Standard & Poor’s has increased the rating assigned to Colonial from BBB to BBB+ within the investment grade category.
The credit agency has ruled out possible revisions of that rating by assigning a stable outlook for the company.
Colonial managed to increase its rating after reaching an agreement with Qatar, whereby the sovereign fund of that country became the company’s largest shareholder by acquiring 20% of its share capital through an exchange of shares.
By virtue of that operation, the Spanish Socimi consolidated its controlling position in its French subsidiary Société Foncière Lyonnaise (SFL), given that Qatar granted it the 22% stake that it owned in that company, allowing it to increase its share of the capital to 80%, in exchange for shares in the Spanish real estate company proceeding from a non-monetary capital increase.
S&P also reviewed Colonial’s rating upward after the Socimi completed the merger of another Socimi Axiare and closed the sale of a portfolio of offices owned by that company which did not fit with its business strategy.
Original story: Expansión
Translation: Carmel Drake