Tritax EuroBox, which invests in logistics real estate assets in continental Europe, has been assigned an investment grade credit rating by Fitch Ratings.
By achieving investment grade rating (it has been assigned a BBB- long-term corporate credit rating), the group has satisfied a condition on its existing revolving credit facility that will result in an immediate and automatic step down in the cost of its debt by around 30 basis points.
In addition to the immediate strengthening of the company’s earnings per share due to the reduction in financing costs, the investment grade credit rating will allow the company access to the debt capital markets.
Mehdi Bourassi, finance director, said: “The company’s recent successful fundraise allows us to capitalise further on the significant opportunities that exist in the continental European logistics real estate market. Obtaining an investment grade credit rating marks a significant milestone in the evolution of the company, demonstrating our maturity and stability. It will enable access to a wider pool of financing strategies, leading to even greater resilience and a lower cost of debt.
“We look forward to updating investors on the deployment of the recently raised capital as we further strengthen and diversify our portfolio in line with our long-term strategy.”
[QD view: Things are moving fast for Tritax EuroBox. Last week it announced an oversubscribed capital raise of €230m, which will be ploughed into both income producing assets and higher yielding development projects, and now has achieved investment grade rating. The resulting reduction in finance costs will be immediately beneficial to earnings, but it also opens up access to the bond market and cheaper debt.]
EBOX : Tritax EuroBox assigned investment grade credit rating by Fitch