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European rating agency. Objective, transparent, independent.

SIGNA Prime Selection AG

Rating History

Rating Watch Outlook Decision Date Action Validity Date Maximum Validity
A+ Outlook STA 30.10.2020 05.11.2020
A+ Watch NEW 03.06.2020 09.06.2020
A+ Watch NEW 02.04.2020 09.04.2020
A+ Outlook NEG 04.06.2019 13.06.2019
A+ Outlook STA 30.05.2018 01.06.2018
A+ Outlook STA 31.05.2017 02.06.2017 30.05.2018

News

  • 05.11.2020
    Rating summary:
    Creditreform Rating has confirmed the SME Issuer Rating of SIGNA Prime Selection AG with A+ and replaced the addition "watch NEW" with a stable outlook. The main reason for this is the fact that the creditors' meeting of Galeria Karstadt Kaufhof GmbH (GKK), which is a tenant of various properties owned by SIGNA Prime Selection AG, approved the insolvency plan drawn up by the management of GKK for the restructuring of the department store chain on 01.09.2020, as part of the protective shielding procedure. On 30.09.2020 the Essen District Court cancelled the insolvency proceedings concerning the assets of GKK. As a result, the risks from the properties leased to GKK have been significantly reduced. In addition, the SIGNA Group has been able to further optimize or supplement its existing real estate and trading portfolio in the current business year. This includes the sale of 21 GKK retail properties and an office property in Frankfurt-Eschborn ("The CUBE") and the acquisition of a real estate portfolio of the luxury department store chain "Globus", Switzerland in a 50:50 joint venture. The previously stable real estate portfolio in first-class macro and micro locations, mainly in Germany, Austria and Switzerland, thus contributes to the rating. Including the 7 new Globus properties and 7 so-called minor assets, the portfolio currently comprises 31 properties with a focus on inventory management as well as 16 development projects and 12 trading properties The Executive Board reaffirmed its budget planning of May 2020 to the Supervisory Board in September. Based on this, and based on its half-year figures for 2020 the Group continues to show sufficient profitability and (external) financing power, as well as satisfactory balance sheet ratios and loan-to-value ratios despite certain negative COVID-19 related effects.
    The further course of the COVID 19 pandemic and the further countermeasures taken by governments to contain it remain to be observed. The current intensification of the pandemic could further worsen the negative economic development in the markets and industries relevant to SIGNA Prime Selection AG. Due to the high quality real estate portfolio and sufficient liquidity, we do not see any immediate risk for the rating object, but we do not completely rule out negative effects in the medium term with declining profitability. Currently, the Group's rentable space can be mainly allocated to the retail and hotel segments. At the moment, these sectors are generally among the more severely affected and sensitive sectors of the economy in terms of the pandemic. Most of the remaining rentable space is allocated to the office segment, which could be affected in the medium term by an increasing trend towards digitalization and Home Office. Under the current conditions, the dividend from the net income for 2019 of around EUR 201 million also has a limiting and dampening effect on the rating.
  • 09.06.2020
    Further details regarding the regulatory requirements according to ESMA (European Securities and Markets Authority) Guidelines 33-9-320 can be found in the document attached below.
  • 09.04.2020
    Further details regarding the regulatory requirements according to ESMA (European Securities and Markets Authority) Guidelines 33-9-320 can be found in the document attached below.
  • 13.06.2019
    Creditreform Rating has confirmed the corporate rating of SIGNA Prime Selection AG of A+. The company's real estate portfolio of both, macro and micro, prime locations in Germany and Austria continues to show stable valuations. The portfolio currently comprises 16 investments with a holding focus and numerous developments. Moreover, significant capital measures were conducted in 2018.
    The negative outlook is primarily due to potential risks within a sub-portfolio. A change in the outlook can be made at any time during the monitoring period.
  • 01.06.2018
    Creditreform Rating has confirmed the corporate rating of SIGNA Prime Selection AG of A+ with stable outlook. The company's real estate portfolio of both, macro and micro, prime locations in Germany and Austria continues to show stable valuations. The portfolio currently comprises 22 investments with a holding and development focus. Moreover, significant capital measures had been conducted in 2017.
  • 02.06.2017
    Creditreform Rating confirms the corporate rating of SIGNA Prime Selection AG with A+. The outlook is stable. The company's real estate portfolio of both, macro and micro, prime locations in Germany and Austria continues to show stable valuations. The portfolio currently comprises 18 investments with a holding and development focus. Moreover, it is planned to conduct significant capital measures in 2017.