S&P Global Ratings has announced that its rating and outlook on NEPI Rockcastle are unchanged following the publication of an investment report by Viceroy Research on the 28th of November and NEPI Rockcastle’s detailed public refutation of that report as well as the various market reactions to this information.
In Viceroy Research’s report, it is alleged that there are accounting discrepancies within NEPI Rockcastle’s financial reporting and requests stakeholders to reinforce their demands for an independent forensic investigation into the company’s operations. The initial equity market reaction was significant, with the company’s share price losing over 13%. This was largely recovered after NEPI Rockcastle released detailed statements on its reporting, indicating that the Viceroy Report is based on numerous factual errors, misleading information and false claims.
NEPI Rockcastle also confirmed that Viceroy’s allegations will have no impact on the fair valuation of its assets base and its overall property appraisal process, as reflected in its financial statements prepared under International Financial Reporting Standards.
“Our ratings and outlook on NEPI Rockcastle are therefore unaffected, reflecting the lack of conclusive evidence contained in the Viceroy Research report. We will monitor possible developments related to the allegations, including in terms of NEPI Rockcastle’s access to capital markets“.
This report does not constitute a rating action.