AEDAS Homes, a leading Spanish homebuilder, has received reaffirmation in recent weeks from the three main international rating agencies (Moody’s, Fitch, and S&P), all of which have maintained the credit rating assigned to the company since 2021, citing a "stable" outlook. The agencies highlight the importance of the company’s balanced financial policy, its solid commercial and operational performance, and the strength of its landbank.
Moody’s, in its most recent report, notes that the 'Ba2' rating given to AEDAS Homes is “primarily supported by its leading market position” and the “resilient dynamics of the homebuilding market in Spain, characterised by a structural undersupply and growing number of households in the regions where AEDAS operates”. Likewise, the agency’s analysts highlight the developer’s “balanced financial policy”, including “a publicly communicated financial target of maintaining net debt/EBITDA below 2x”.
Furthermore, Moody’s stable outlook is underpinned by expectations that the company will maintain “good liquidity, through a proactive approach in managing upcoming debt maturities” and the “solid levels of presales” over the next two years.
Strong sales performance
Moody’s opinion is echoed by Fitch, which also emphasises the strong demand for new-build homes in Spain and maintains the developer’s 'BB-' rating with a "stable" outlook, thanks to a “strong sales performance supported by healthy demand, which over the past two years has been resilient despite higher interest rates and increased economic uncertainties.”
The Fitch report also notes the company’s revenue diversification, owing to the launch of its Real Estate Services division, the stability of its Order Book and its strong sales results as strengths, “supported by its large landbank, equivalent to around five years of production”.
Along the same lines, analysts at S&P, who have maintained their 'B+/Stable' rating for AEDAS Homes, underscore the company’s financial policy as a key reason for keeping this stable outlook, due to “lower leverage than other rated Spanish real estate developers”. The report also indicates expectations that gross debt to EBITDA will remain at around 3x over the next 12 months.
As with Moody’s and Fitch, S&P’s stable outlook reflects the fact that AEDAS Homes’ “revenue should remain supported in the coming 12 months by high presales and resilient demand” for new-build homes.
“These ratings from Moody’s, Fitch, and S&P confirm the company’s strategy of maintaining appropriate leverage and a responsible, profitable and efficient financial model,” explained María José Leal, CFO of AEDAS Homes.
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