METROVACESA SA

ISSUER RATING : EthiFinance Ratings affirms Metrovacesa s "BB+" rating, maintaining its Stable outlook. Metrovacesa, S.A. is a Spanish housing developer and land manager that operates in residential and tertiary segments. The Group, which has completed the initial phase, reported total revenues and EBITDA of € 519.2MM and € 45.8MM respectively in 2022, showing a high NFD/EBITDA ratio of 4.9x although with highly controlled leverage levels in relation to the market value of its assets (LTV of 9.6%). The Group has been listed on the continuous market since 2018 and has a combined capitalisation of more than € 1.1Bn in April 2023. INSTRUMENT RATING : EthiFinance Ratings affirms Metrovacesa's bond issue rating at "BBB". This € 30MM 5-year senior secured bond issue was used to complement financing for the development of its portfolio. The issue shows a solid collateral structure that adequately covers the principal amount in circulation. Metrovacesa promises to reposition the collateral in unfavourable scenarios in order to maintain the rating associated with the issue.