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.
--------------------------------------------------------------------------------

Ratings

St Helier Jersey / Channel Islands (euro adhoc) - Atrium European
Real Estate Limited

Credit Rating Update

Jersey, 18 October 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 Fitch Ratings has affirmed Atrium´s Long-term Issuer
Default Rating (IDR) of `BB+´, senior unsecured rating of `BB+´ and
Short-term IDR of `B´. Fitch Ratings also upgraded Atrium´s outlook
to `Postive´.

A copy of the Fitch Ratings announcement is below:

Fitch Revises Atrium's Outlook to Positive; Affirms at 'BB+' 18 Oct
2011 Fitch Ratings-London-18 October 2011: Fitch Ratings has revised
Atrium European Real Estate Limited's (Atrium) Outlook to Positive
from Stable and affirmed its Long-term Issuer Default Rating (IDR) at
'BB+', senior unsecured rating at 'BB+' and Short-term IDR at 'B'.

"Fitch expects Atrium's financial metrics to remain resilient and
stable in the next two years, despite two major shopping centre
acquisitions in 2011," says Jean-Pierre Husband, a Director in
Fitch's EMEA Corporate Finance team. "The Positive Outlook reflects
Atrium's substantial progress in resolving outstanding litigation
claims, which is a prerequisite for any upgrade of the ratings."

Fitch believes Atrium's EBIT NIC should settle between a still
comfortable 5.0x and 5.5x in 2011-2013 (including the Prague and
Promenada, Poland shopping centre acquisitions completed this year)
despite the agency's assumption of higher interest costs on bank debt
during the period. Fitch expects Atrium to maintain an EBIT NIC of
above 2.0x for an investment grade rating.

Net leverage should also stay moderate in the next three years
(loan-to-value ratio (LTV) of between 5% and 25%) and below industry
averages in the short to medium term (LTVs of around 35%-45%). This
allows Atrium some financial flexibility, although recent
acquisitions have used secured debt, which may constrain the group's
unsecured asset cover. Fitch expects Atrium to diversify its access
and sources of funding in the next two to three years.

The contentious position between Meinl Bank AG (Meinl) and Atrium was
resolved in June 2011, with all claims and lawsuits against each
other withdrawn. Fitch notes that Atrium made no cash payments under
this settlement. The companies also agreed to sever all business ties
and new bond trustees were appointed.

The ratings are constrained by the remaining outstanding litigation
regarding the share buybacks in 2007. Although Fitch believes that
the ultimate liability to the owners and management is limited, there
is still some residual uncertainty and Atrium's ability to issue new
bonds may be constrained. The resolution of all residual litigation
claims would be a strong positive towards the restoration of an
investment grade rating for the group.

Atrium's EBIT net interest cover (NIC) improved to 7.7x in 2010 (8.6x
at H111) from 2.7x in 2009. This was due to stable rental income,
reduced property costs and lower interest payments, resulting from
high-coupon bond buybacks.

Gross rental income increased by 1.8% in 2010 (+14.5% at H111
compared to H110), as Atrium restricted temporary letting discounts
in Russia and improved occupancy rates. This positive trend is
underlined by increased occupancy across the group's CEE shopping
centre portfolio, now at 96.6% at H111 (94.6% at H110).

At 30 June 2011, while the group had no undrawn committed debt
facilities, Atrium had EUR210m of cash deposits available, sufficient
to pay the outstanding development costs and total debt maturities of
EUR51m in H211 and 2012. With only EUR8m of committed development
spending, Atrium's liquidity remains relatively strong (with a
liquidity score of around 4.1x at H111). A liquidity score of at
least 1.75x is considered appropriate for a return to a 'BBB-' IDR
rating.

For further information:

FTI Consulting Inc.: +44 (0)20 7831 3113
Richard Sunderland
Will Henderson

richard.sunderland@fticonsulting.com

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:richard.sunderland@fd.com

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: Richard.sunderland@fd.com
WWW: http://www.aere.com
sector: Real Estate
ISIN: JE00B3DCF752
indexes: Standard Market Continuous
stockmarkets: official market: Wien
language: English