EANS-News: Atrium European Real Estate Limited / Credit Rating Update

--------------------------------------------------------------------------------
Corporate news transmitted by euro adhoc. The issuer/originator is solely
responsible for the content of this announcement.
--------------------------------------------------------------------------------

St Helier Jersey / Channel Islands (euro adhoc) - Credit Rating Update

Jersey, 18 February 2011. Atrium European Real Estate Limited ("Atrium" or the
"Company") (VSE/Euronext: ATRS), one of the leading real estate companies
focused on shopping centre investment, management and development in Central and
Eastern Europe, is pleased to announce that, following a meeting with the
Company, Standard & Poor's Ratings Services ("S&P") has affirmed Atrium's
Long-term 'BB', and Short-term 'B' corporate credit ratings. At the same time
S&P has removed Atrium's 'Creditwatch negative' outlook and upgraded it to
'Stable'.

A copy of the S&P press release is below:

"We have met with the management of Atrium European Real Estate Ltd. (Atrium) to
discuss Atrium's ongoing legal dispute with Meinl Bank and the measures that
Atrium has taken to address the timeliness and reliability of its disclosure.

* We now believe that the legal dispute between Atrium and Meinl Bank is
unlikely to have a material effect on Atrium's credit quality over the short to
medium term.

* We are therefore affirming the 'BB' long-term and 'B' short-term corporate
credit ratings on Atrium and removing them from CreditWatch negative.
* The stable outlook reflects our view that Atrium will continue to exhibit a
steady operating performance.

LONDON (Standard & Poor's) Feb. 18, 2011--Standard & Poor's Ratings Services
said today that it affirmed its 'BB' long-term and 'B' short-term corporate
credit ratings on Atrium European Real Estate Ltd. (Atrium). At the same time,
we removed the ratings from CreditWatch, where they had been placed with
negative implications on Jan. 31, 2011. The outlook is stable.

"The rating affirmation reflects our greater clarity on Atrium's strategy for
dealing with its ongoing legal dispute with Meinl bank, as well as our view of
the company's stable operating performance and adequate liquidity," said
Standard & Poor's credit analyst Amra Balic. "It also reflects our consideration
of the lack of information provided by Atrium on the non payment of interest on
its 2008 bond issued to Meinl Bank in the broader context of the legal dispute
with Meinl Bank."

Atrium owns, manages, and develops retail real estate properties in Central and
Eastern Europe. On Sept. 30, 2010, the market value of Atrium's portfolio was
E2.2 billion. Atrium is reportedly subject to litigation dating back to its
existence as Meinl European Land.

Our assessment of Atrium's business risk profile as fair has not changed.
Although Atrium has put most development activities on hold, we anticipate that
it will continue to invest in new and existing assets.

We assess Atrium's financial risk profile as significant, based on its credit
ratios. However, in the future, our assessment of the company's financial risk
profile will also depend on the quality and timeliness of disclosure, our
reappraisal of the company's financial policy, and our view of corporate
governance.

In our view, Atrium should continue to exhibit a stable operating performance
and an improved capital structure. We think that Atrium will likely maintain
conservative leverage until it successfully completes its large development
pipeline, and until its portfolio of standing retail real estate assets begins
to generate a relatively stable stream of rental income. In addition, we
anticipate that the company will likely maintain an internal liquidity cushion
sufficient to meet any unexpected shortfalls in income or cost overruns in its
development projects.

We could raise the ratings if we see that Atrium continues to limit its
development activities, cash flow metrics improve, and market conditions show
signs of a substantial and sustainable recovery. We also intend to evaluate
developments in the company's corporate governance structure and any residual
litigation risk before considering an upgrade.

Alternatively, we could lower the ratings if in particular we see a prolonged
market downturn or any material increase in discretionary spending over the
short term, or if unexpected changes in the capital structure or corporate
governance hamper investors' still-fragile confidence in the company."

For further information:
Financial Dynamics: +44 (0)20 7831 3113
Richard Sunderland
Laurence Jones
Will Henderson
[email protected]

This press release appears as a matter of record only and does not constitute an
offer to sell or a solicitation of an offer to purchase any security.

Atrium is established as a closed-end investment company domiciled in Jersey.
Atrium is registered with the Dutch Authority for the Financial Markets as a
collective investment scheme which may offer participations in The Netherlands
pursuant to article 2:66 of the Financial Supervision Act (Wet op het financieel
toezicht). All investments are subject to risk. Past performance is no guarantee
of future returns. The value of investments may fluctuate. Results achieved in
the past are no guarantee of future results. The Dutch and Austrian paying agent
of Atrium is Kempen & Co. N.V., Beethovenstraat 300, 1077 WZ Amsterdam, the
Netherlands.

Further inquiry note:
Financial Dynamics, London
Richard Sunderland / Laurence Jones
Phone: +44 (0)20 7831 3113
mailto:[email protected]
end of announcement euro adhoc
--------------------------------------------------------------------------------

company: Atrium European Real Estate Limited
Seaton Place 11-15
UK-JE4 0QH St Helier Jersey / Channel Islands
phone: +44 (0)20 7831 3113
mail: [email protected]
WWW: http://www.aere.com
sector: Real Estate
ISIN: JE00B3DCF752
indexes: Standard Market Continuous
stockmarkets: official market: Wien
language: English

OTS-ORIGINALTEXT PRESSEAUSSENDUNG UNTER AUSSCHLIESSLICHER INHALTLICHER VERANTWORTUNG DES AUSSENDERS - WWW.OTS.AT | CNE

print