AUSTIN: Moody’s Public Sector Europe has today assigned a first-time long-term issuer rating of A1 to GEWOBAG Wohnungsbau-AG Berlin. The outlook is stable.
GEWOBAG is a municipally-owned housing company operating in Germany’s capital Berlin.
The A1 issuer rating assigned to GEWOBAG reflects its robust institutional framework with good oversight; fairly low-risk business profile and operating model centered on letting residential properties at moderate rents, including regulated social housing; sector-average debt level and expected adequate interest coverage ratios; relatively low profitability ratios resulting from its social housing mandate by the city, reflected in several contractual agreements with the city and currently low level of liquidity relative to outstanding debt, which is mitigated by substantial unencumbered assets and some expenditure flexibility. The rating also takes into account a strong likelihood of extraordinary support from the Land of Berlin in the event that GEWOBAG faced acute liquidity stress…