S&P upgrades Cushman & Wakefield to ’BB’ on leverage progress

S&P Global Ratings has raised Cushman & Wakefield plc's issuer credit rating from 'BB-' to 'BB', following a recovery in commercial real estate activity and disciplined debt reduction efforts. The agency expects Cushman & Wakefield to maintain adjusted leverage within a 3x to 4x range, even during weaker market cycles. By the end of 2025, adjusted leverage had decreased to 3.5x from 4.5x a year earlier, with projections to further improve to 3x-3.5x by 2027.

Strong performance in the first half of 2026, driven by robust office and industrial leasing, along with steady growth in property services, contributed to this progress. S&P's trailing 12-month adjusted EBITDA reached 10.8% as of June 30, 2026, and leverage stood at 4x. The rating agency anticipates annual revenue growth of 6% to 7% through 2027, supported by a solid leasing pipeline and high-margin service contracts.

Management is committed to financial discipline, utilizing excess free cash flow for strategic acquisitions while remaining flexible to reduce discretionary spending if market conditions worsen. Despite the upgrade, S&P maintains a 'fair' business risk assessment, acknowledging the company's smaller revenue and lower EBITDA margins compared to larger, higher-rated peers in the commercial services sector.

However, Cushman & Wakefield's status as one of the top three global real estate service providers, with enduring client relationships, partially offsets this disadvantage. The stable outlook suggests that sustained operational growth and prudent capital allocation will keep credit metrics within target thresholds over the next 12 to 24 months.

S&P cautioned that a downgrade could occur if leverage surpasses 4x due to severe market downturns or aggressive debt-funded actions, while an upgrade would require leverage to fall below 3x alongside sustained margin expansion above 10%.