Scope overly optimistic for Corem

A Berlin credit rating agency, Scope Ratings, affirms a BBB- rating of Corem Property Group AB, and revises its Outlook to Negative.

The rating affirmation might be considered overly optimistic for the following reasons:

In addition, there are the following aspects:

• An overall negative financial situation for tenants with lower net income and raising short term interest rates, which is the most preferred rate in private households.
• Since most of the property owners are interlinked with joint funding consortium and shares, the immense difficulties from SBB will affect also Corem.
• Corem has a higher proportion of property in high end areas, which may have a higher volatility in an economic downsize.

Given these factors, the BBB- rating with a Negative Outlook might be considered overly optimistic as it does not fully account for the challenges and risks faced by Corem Property Group AB in the current economic climate.