First Berlin Equity Research has published a research update on Grand City Properties S.A. (ISIN: LU0775917882). Analyst Ellis Acklin reiterated his BUY rating and maintained his EUR 14.20 price target.

Abstract
Standard & Poor’s (S&P) has downgraded GCP’s credit rating one notch to BBB with a stable outlook (old: BBB+ negative outlook), matching the re-rating of Aroundtown (62% stake). The ratings agency now thinks that a still sputtering German economy will hamper AT’s 2025 disposal activity and its ability to hit S&P’s leverage requirements. But Grand City’s stand-alone credit profile (SACP) stays at BBB+, and S&P highlighted GCP’s good operational performance and residential market fundamentals for Germany and London. GCP’s bonds barely reacted to the news suggesting that the re-rating was priced in. We maintain our Buy rating and €14.2 TP (35% upside).