Fitch Ratings (“Fitch”) and S&P Global Ratings (“S&P”) have today both confirmed Samhällsbyggnadsbolaget i Norden AB (publ) (“SBB”)’s investment grade rating BBB-. Fitch confirms its rating with a positive outlook and S&P updates its rating to a stable outlook.

The rating from Fitch reflects the stability of SBB’s rental income from community service properties and Swedish rent regulated residentials, where the share of income from rent regulated residentials has increased, as well as SBB’s focus on deleveraging. Factors that can lead to a rating upgrade include net debt / EBITDA below 12.5x (or 14.5x 2022 pro forma) based on the existing property portfolio, where approximately 25 percent of rental income comes from Swedish rent regulated residentials. In the most recent previous rating report, the corresponding key ratio was stated to be 11.5x based on a portfolio where 20 percent of the rental income came from Swedish rent regulated residentials, which means that the conditions for an upgrade have been strengthened.

S&P states in its report that the stable outlook indicates that SBB’s properties continue to be promoted by high demand for community service properties and Swedish rent regulated residentials thanks to favorable demographic trends and housing shortages in the Nordic region. At the same time, it is estimated that SBB’s future financing costs may increase given the weakened credit market, which is the reason for the adjustment to a stable outlook.

“We are determined to continue our work to strengthen our long-term financial position. Therefore, it is gratifying that Fitch has drawn attention to our growing stock of rent regulated residentials and presents key figures that make it easier for us to obtain a higher rating. We feel confident to also achieve the key figures for higher ratings that S&P presents,” comments Ilija Batljan, CEO and Founder of Samhällsbyggnadsbolaget i Norden AB.

For further information, please contact:

Ilija Batljan, CEO and Founder of Samhällsbyggnadsbolaget i Norden AB, [email protected]