Top Finnish Landlord Downgraded to Junk Status as Crunch Worsens

One of the biggest retail property companies in the Nordic region has seen its credit rating cut to junk status as the crisis caused by a funding squeeze continues to reverberate across the sector.

Finland-based Citycon Oyj was downgraded one step to Ba1 and kept on negative outlook by Moody’s Investors Service. The rating action, which came late on Friday, means the landlord joins a growing list of so-called fallen angels within the region’s commercial property industry, including Swedish firms Samhallsbyggnadsbolaget i Norden AB and Fastighets AB Balder.

“We expect the operating environment for Citycon’s tenants to increasingly worsen ...