The rating is supported by the company's debt restructuring, but constrained by the short-term relief it provides, which leads to ongoing refinancing risk.

The assignment of a default status follows the execution of a debt restructuring that Scope regards as a distressed debt exchange.

The downgrade is driven by increased liquidity risks, as DKR's extension of the maturity of its senior unsecured bond to within the payment grace period limits its room for manoeuvre.

The multi-notch rating downgrade is a reflection of the lack of tangible refinancing for DKR’s maturities within three months.

The rating downgrade reflects DKR’s recent announcement of significant write-downs on property values and shareholder loans, impairing both credit metrics and upcoming refinancings.

The rating affirmation reflects DKR’s resilient business model, which has kept credit metrics stable despite higher interest rates applying pressure on interest cover and asset values.

The rating affirmation reflects continued growth paired with stable credit metrics. Cash flow is resilient and valuation risk from peaking inflation is limited, given a large share of CPI-linked lease contracts and defensive property holdings.

The affirmation is driven by Scope’s view that the defensive characteristics of the issuer’s tenant portfolio support stable cash flow and thus stable credit metrics despite the fallout of the pandemic on the retail sector.