Significant refinancing of Derwent London’s £1bn debt has helped the company earn a ratings boost from Standard & Poors.
Standard & Poors raised Derwent’s long-term corporate credit rating to BBB+ from BBB “to reflect the company’s improved financial profile”.
Damian Wisniewski, finance director at Derwent, said: “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.”
Bank loans, which only a few years ago had made up almost all of Derwent’s debt, now accounted for only 40%.
Wisniewski said the next facility to expire was £90m in 2017 – £70m of which had been drawn – of which Derwent would be looking to refinance.
The company said the conversion into ordinary shares of convertible bonds in January would see the company’s LTV fall from 24.0% to 19.9% this year.
Standard & Poors rates Derwent’s outlook as stable reflecting “the robust demand for prime office space in the center of London”.