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Investing.com -- Fitch Ratings has downgraded Globe Trade Centre S.A. (GTC) to ’B’ from ’BB’ while maintaining a Rating Watch Negative, citing heightened refinancing risk for the company’s debt.
The downgrade reflects concerns about GTC’s ability to refinance its June 2026 EUR494 million unsecured bond. Despite working with JP Morgan and engaging in advanced discussions with bondholders, the refinancing is unlikely to be completed by the end of July.
GTC faces approximately EUR810 million in debt maturities through June 2026. The company plans to address these obligations through capital-market transactions, new secured funding, bank loan extensions, and asset disposals.
The company’s liquidity position improved in June when it secured EUR84 million in financing from J&T Banka, using its Galeria Północna shopping center as collateral. GTC’s shareholders also decided to forgo dividend payments in 2025, further strengthening its cash position.
GTC has made moderate progress with asset disposals, selling Matrix C office in Zagreb in the fourth quarter of 2024, followed by GTC X office in Belgrade and a Warsaw land plot in the first quarter of 2025. These sales generated EUR88 million in net proceeds, increasing the company’s cash to EUR63 million by the end of the first quarter.
The company has set aside EUR45 million from disposal proceeds specifically for the June 2026 unsecured refinancing. Additional planned disposals include Kildare in Ireland, valued at EUR119 million, though Fitch excludes this from its rating case due to repeated delays.
Fitch forecasts GTC’s adjusted net debt/EBITDA ratio will reach 11.4x in 2025 before gradually declining to 8.7x by 2028, supported by approximately EUR340 million in forecast disposal proceeds from Central and Eastern European assets.
The rating agency expects to review the Rating Watch Negative by September 2025, with the outcome dependent on GTC’s progress in addressing its June 2026 bond maturity.
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