Credit Research: Von der Heyden Group Finance

Notwithstanding the material impact on the hospitality segment, which represents VDH’s largest revenue contributor, the diversification in real estate has been a key contributor to the Group. Moving forward, besides current macroeconomic risks, the way with which the current cash levels are going to be deployed is fundamental to the risk profile of the business. Notwithstanding this, based on current available information, we believe that a Neutral credit opinion is justified on this Issuer.
VDH’s bond is currently trading at €101.30, translating into a YTM of 3.94%. Despite the improved macroeconomic outlook, in addition to the Group’s current strong cash reserves, VDH is still subject to possible downside risks, including risks pertaining to COVID-19 such as the challenges affecting the vaccine roll-out and the risk of the virus mutating further. Additionally, real estate projects involve relatively a high degree of execution risk, which might possibly fail to generat