Standard & Poor’s has raised Derwent London’s long-term corporate credit rating to BBB+ from BBB “to reflect the company’s improved financial profile”. Following the conversion into new ordinary shares of the convertible bonds 2016 in January 2015, Derwent London estimated that the proforma December 2014 net interest cover ratio would rise from 286% to 338% and its loan-to-value ratio would fall from 24.0% to 19.9%. In addition Standard & Poor’s rates the outlook as stable reflecting “the robust demand for prime office space in the center of London”.
Damian Wisniewski, Finance Director, commented:
“This credit rating upgrade from Standard & Poor’s is recognition of the work that we have done over recent years to further enhance Derwent London’s financial position. Since 2012 we have substantially refinanced the Group’s debt thereby introducing greater flexibility, diversifying our sources of finance and significantly increasing the amount of uncharged property that we own. Over the same period, property markets in our central London villages have strengthened materially.”