Moody's assigns Baa3 rating to Citycon

Moody's Investors Service has assigned a first-time rating of Baa3 to Finnish real estate firm Citycon.

Listed in Helsinki, Citycon invests in and manages community shopping centres primarily in Finland, Sweden and Estonia.

The company reported net rental income of €162 mln for the last 12 months and total assets of €3.1 bn at end-March 2013.

Citycon's two largest shareholders are Gazit Globe, an Israeli investment company with a 49% stake, and Ilmarinen Mutual, a Finnish pension fund that owns 11%.

'The Baa3 rating we have assigned to Citycon balances its recurring rental income, with leases being inflation-linked, its solid cash flow, owing to high average occupancy rates, and adequate liquidity with its still fairly high leverage and low fixed charge coverage,' said Moody's analyst Lynn Valkenaar.