Fitch assigns Befimmo B+, notes BB-

Fitch Ratings said it assigned Alexandrite Monnet UK Holdco plc a B+ first-time long-term issuer default rating with a stable outlook and its planned €350 million secured bond an expected senior secured BB- rating with an RR3 recovery rating. Alexandrite Monnet owns 100% of Befimmo Group FIIS.

The Befimmo group's €2.8 billion end-2023 portfolio is characterized by healthy demand for its high-quality Brussels offices, with solid occupancy of 96%, the agency noted.

“Public-sector tenants represent 56% of rent ensuring sustained cash flow with a weighted average lease term to earliest break (WALB) of 9.5 years, and an indexation-related like-for-like (lfl) rental increase of around 10% in 2023. This stability positions the group favorably versus its and peer group's other central business district (CBD) office portfolios,” Fitch said in a statement.

Fitch said it rates Alexandrite Monnet and the planned five-year senior secured notes under its investment holding companies criteria, acknowledging its sole purpose of indirectly owning 100% of Befimmo Group FIIS' shares, and its dependence on cash dividends from Befimmo Group FIIS entities to service its debt.

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