Standard & Poor's rating agency has maintained Colonial's credit rating at ‘BBB+’ with a stable outlook. This decision is based on the value generation of its portfolio and the application of a prudent financial policy.
S&P has highlighted in its evaluation the business model of the Spanish socimi, which is positioned on the European podium in the prime office segment. Colonial's portfolio is concentrated in premium locations in Paris, Madrid and Barcelona, standing out for its sustainability standards. According to S&P, the quality of the portfolio ensures high demand in markets with limited supply, resulting in high occupancy levels and rent increases, also supported by a portfolio of high-end clients. In addition, the agency values positively the divestments made by Colonial, which are aligned with the latest market valuations.
S&P also highlighted Colonial's prudent financial policy, particularly its management of pre-hedging, which has allowed it to keep financial costs under control in a context of rising interest rates. It also highlights Colonial's high liquidity, which at the end of 2023 exceeded 2.9 billion euros, and anticipates that the company will be able to reduce its debt burden through divestments and rental growth.
Colonial was the first Spanish real estate company to obtain an ‘investment grade’ rating from S&P in 2015, and since 2018 has maintained an uninterrupted rating in the ‘BBB+’ segment, even during the pandemic, a period in which it maintained its credit rating while many in the sector were revised downward.
Green financing
In the field of green financing, Colonial was among the first Ibex-35 companies to convert all its bonds into green bonds, reflecting a growing commitment to sustainability. This type of debt is intended to finance “green assets”, backed by a portfolio of real estate with certifications of excellence in sustainability.
Colonial also stands out in sustainability at a global level, leading international rankings. In the latest evaluation by Sustainalytics, a subsidiary of Morningstar, it obtained the best ESG score in the IBEX 35 and one of the highest globally. For the last three years, it has maintained the highest CDP (Carbon Disclosure Rating), being the only real estate company based in Spain to achieve this recognition.
