Fitch, the ratings agency, slammed more doors shut for Brixton yesterday, after deciding to put the industrial and warehouse specialist on 'watch negative'. It believes that Brixton, down another 12% – or 3.25p to a record low of 23.75p – is almost certain to breach its covenants when they are tested in June.
With a market value of £65m, it does not have enough resources to repay £380m debt by the second half of 2010, Fitch said, adding that an equity issue looked unlikely given that investor appetite had been sated by rivals. Segro gained 15p to 97p after announcing its rights issue.
Financial Times, Daily Telegraph