EANS-News: Atrium European Real Estate Limited / CREDIT RATING UPGRADE TO INVESTMENT GRADE

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Ratings

St Helier Jersey / Channel Islands (euro adhoc) - CREDIT RATING
UPGRADE TO INVESTMENT GRADE

Jersey, 8 October 2012. Atrium European Real Estate Limited ("Atrium"
or the "Company") (VSE/ Euronext: ATRS), a leading owner, operator
and developer of retail real estate and shopping centres in Central
and Eastern Europe, is pleased to announce that, to reflect "Atrium's
strong operating performance driven by the growth economies of
Central Eastern Europe and a more mature rental income stream", Fitch
has upgraded the Company's Long-term Issuer Default Rating to the
investment grade level of 'BBB-' with a 'stable' outlook.

Rachel Lavine, CEO of Atrium, commenting on the upgrade, said:

"Achieving an investment grade rating for Atrium has been a long
standing target of the management team and, together with the upgrade
by Standard & Poor's announced last month, today's upgrade from Fitch
recognizes several years of hard work in restructuring the Company.
The decision by Fitch reflects Atrium's increased financial strength,
which provides a firm foundation on which to further build the
Company's portfolio of assets and grow profitability."

The press release issued by Fitch is included below:

FITCH UPGRADES ATRIUM TO 'BBB-'; OUTLOOK STABLE

Fitch Ratings-London-08 October 2012: Fitch Ratings has upgraded
Atrium European Real Estate Limited's (Atrium) Long-term Issuer
Default Rating (IDR) and senior unsecured rating to 'BBB-' from
'BB+'. The Outlook on the IDR is Stable. The agency has also upgraded
the Short-term IDR to 'F3' from 'B'.

The upgrade reflects Atrium's strong operating performance driven by
the growth economies of Central Eastern Europe and a more mature
rental income stream benefiting from improved average lease tenure of
5.5 years and operational efficiencies. Material litigation claims
are now largely resolved and following the debt buyback during 2012,
the average debt maturity profile at 4.9 years is closely aligned to
its lease maturity profile.

Fitch believes Atrium's EBIT NIC should remain comfortable at around
6.0x with an LTV remaining within managements range of 30%-35% over
the medium term, even when assuming modest acquisitions. These key
financial metrics on a forward-looking trajectory look above average
for the investment grade EMEA REIT universe. However, Atrium is only
funded on a secured debt basis, which to some extent limits
operational flexibility. However, around 40% of Atrium's investment
property portfolio is unencumbered and current liquidity is
reasonable for the rating. Overall, the stronger than average balance
sheet and interest serviceability offset the lack of unsecured
funding.

The tenant profile continues to benefit from solid diversification
with a focus on food anchor tenants, typically large European-based
retail chains that pay rents in euros, mitigating currency risk.
Geographical diversification is broad, with the main focus on Poland
(47% of investment properties), Czech Republic (21%) and Russia
(16%). Divestments in countries where Atrium lacks a solid market
presence would be viewed favourably. Conversely a material refocusing
of the portfolio towards Russia could be viewed as increasing
operational risk.

Fitch expects future rental income to demonstrate resilient
characteristics driven by indexation and modest rent increases upon
renewals. Recent rental income performance is solid, with H112 gross
rental income increasing 5.6% on a like-for-like basis. Growth
relates to indexation stemming from the relatively higher inflation
outlook in Central Eastern European countries. Solid demand and
supply dynamics are evident from Atrium's high renewal rates, with
Fitch expecting the occupancy rate to remain above 95%. Atrium's
geographical markets are benefiting from structural growth with
strong retail spending allowing for higher retail space density.
Until FY14, only 28% of the total rent roll is scheduled for renewal,
providing high visibility over future cash flows.

Fitch views Atrium's liquidity position as reasonable for the rating,
with unrestricted cash of EUR207m at H112. This is sufficient to
cover debt maturities (EUR86m) and committed development costs
(EUR74m) until FY14.

For further information:

|FTI Consulting Inc.: |+44 (0)20 7831 3113 |
|Richard Sunderland | |
|Will Henderson | |
|Daniel O'Donnell | |
|atrium@fticonsulting.com | |

Further inquiry note:
FTI Consulting Inc
+44 (0)20 7831 3113
Richard Sunderland
Will Henderson
richard.sunderland@fticonsulting.com

end of announcement euro adhoc
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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: richard.sunderland@fticonsulting.com
WWW: http://www.aere.com
sector: Real Estate
ISIN: JE00B3DCF752
indexes: Standard Market Continuous
stockmarkets: official market: Wien
language: English