The rating affirmation reflects the successful integration of recently acquired properties and solid operating performance, which has allowed credit metrics to stand well within Scope’s rating guidance.

The rating upgrade is driven by the recent acquisitions done by cash on the balance sheet and a conservative debt uptake, which significantly improve the company’s financial risk profile.

The rating action is driven by the possibility of a default of one of the issuer’s outstanding bonds in April 2023.

Appeninn has been executing its strategy of disposing of non-core CRE and developing its tourism exposure while flattening its maturity profile through refinancing.

The rating action reflects increased credit risks in light of the change in management and strategy, including the exposure to development risks.

The issuer rating is driven by the company’s relatively strong credit metrics, exposure to Budapest and low vacancy rates. Constraints include weak diversification, high tenant concentration and a short WAULT providing limited visibility.