S&P Global Ratings (“S&P”) has today affirmed Samhällsbyggnadsbolaget i Norden AB (publ) (”SBB”)’s Investment grade rating BBB- with stable outlook and removed SBB from Credit Watch Negative. That means that SBB’s new rating is ‘BBB-‘ with stable outlook for ratings on the company and its senior unsecured debt.
According to S&P:s rating metrics SBB:s anchor rating is positioned at BBB Flat thanks to revising upward SBB’s business risk profile to “strong”: “We are revising upward our assessment of SBB’s business risk profile to strong from satisfactory because we consider its scale and size have improved, as well as its cash flow stability”.
S&P concludes in commenting on the upside scenario: “We could raise the rating if SBB’s financial policy became commensurate with higher-rated peers in the ‘BBB’ category. This would result in debt to debt plus equity staying firmly well below 55 per cent, EBITDA interest coverage strengthening to 3x or higher, and debt to EBITDA declining toward 13x or below, with the company maintaining a sizable portfolio of resilient asset classes in favourable locations”.
For further information, please contact:
Ilija Batljan, CEO and Founder of Samhällsbyggnadsbolaget i Norden AB, [email protected]
This information is information that Samhällsbyggnadsbolaget i Norden AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above on June 10, 2020, at 16:45 CET.