S&P Global Ratings (“S&P”) has today affirmed Samhällsbyggnadsbolaget i Norden AB (publ) (”SBB”)’s Investment grade rating BBB- with positive outlook. That means that SBB’s rating is BBB- with positive outlook for ratings on the company and its senior unsecured debt. S&P writes: “S&P Global Ratings today said that Sweden-based property company Samhällsbyggnadsbolaget i Norden (publ), or SBB, sustained its credit metrics in 2021 despite the high asset rotation. Last year, SBB (BBB-/Positive/–) continued to report positive like-for-like rental growth of 1.8% for the whole portfolio, as well as stable occupancy rate of 94.1% with an average leasing contract length for community service properties of 11 years. As of Dec. 31, 2021, SBB’s debt to debt plus equity, as adjusted by S&P Global Ratings, stood at 53.8% (versus 52.6% at end-2020 and 56.1% at end June 2021).”
S&P concludes in commenting on the upside scenario: “Our positive outlook continues to reflect potential ratings upside if SBB’s credit metrics, as adjusted by S&P Global Ratings, keep strengthening. Key considerations will be debt to debt plus equity remaining well below 55%, alongside interest coverage and debt to EBITDA improving on the back of cash flow from the recently acquired businesses”.
“We have all key ratios in place for higher rating and are fully committed to continue deleveraging remaining well below 55% on debt to debt plus equity in order to make sure to be upgraded in shortest time possible”, 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]