Sweedish engineering group ABB is reportedly having difficulty structuring the sale and leaeback of its French property portfolio because of the sharp decline in its credit ratings. At least one large European bank has reportedly refused to participate in a planned sale and leaseback deal of ABB offices in the Paris region.
The project consisted of selling offices, estimated to be worth up to €100m ($125m), to property investors. ABB has suffered a dramatic deterioration in its credit rating over the past five years with Moody's downgrading its long-term debt on several occasions, from Aa2 in 2000 to B1 more recently.
In June 2002, the group sold $300m of Swedish properties to London & Regional Properties and agreed to lease back 75% of them on a long-term basis. It is reported that similar deals might be under study in other locations.
Sphere: Related Content
Monday, February 16, 2004
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment