CPI Property Group Addresses Unexpected Downgrade and Ongoing Challenges

CPI Property Group, a prominent European landlord, released an update addressing recent developments and challenges. The company highlighted its resilience through various crises, including the COVID-19 pandemic and geopolitical tensions in the CEE region. Despite these efforts, the group faced an unexpected downgrade from S&P Global Ratings, lowering their credit rating from BBB- to BB+ with a negative outlook.

The downgrade, a shock to CPI Property Group, came despite regular communication with rating agencies and a recent bond issuance rated BBB- by S&P. The downgrade is expected to slightly increase interest expenses but does not affect the group's liquidity.

CPIPG is committed to regaining its investment-grade rating and will focus on debt reduction and enhancing financial stability. The group also addressed recent acquisitions and baseless allegations from a short seller, emphasizing their legal and financial due diligence.

The group has made significant progress in its disposal strategy, including recent asset sales totaling over €600 million, with further disposals planned. The proceeds will largely be used to reduce leverage, maintaining the group's focus on financial health and stakeholder value.