The credit rating agency S&P Global today announced that they are placing Samhällsbyggnadsbolaget i Norden AB (publ) (“SBB”) on Credit Watch Negative due to ”at this stage, there are some uncertainties about how” the charges against CEO ”will affect SBB’s management and operations, including deleveraging plans which may take longer than” S&P previously anticipated”.
S&P emphasize their understanding “that SBB aims to have good governance standards in place and that the Board operates effectively, with five independent members (both management and shareholders) out of seven in total. At this stage, we do not anticipate material operational disruption in the short term, considering the resilient nature of the underlying business”.
S&P points out that a negative rating action may be taken if they believe the debt-to-debt-plus-equity ratio would remain above 60 per cent for a prolonged period. To increase the rating to BBB Flat requires an adjusted debt-to-debt-plus-equity ratio well below 55 per cent within 12-18 months as previously communicated by S&P.
For further information, please contact:
Ilija Batljan, CEO and Founder of Samhällsbyggnadsbolaget i Norden AB, +46 70 518 39 67, [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 May 8, 2020, at 10:05 CET.