S&P Affirms ’BBB’ Investment Grade Rating for Heimstaden Bostad, Revises Outlook to Negative from Stable
S&P affirms Heimstaden Bostad’s ‘BBB' rating and revises the Outlook to Negative from Stable. The outlook revision is due to S&P’s belief that credit metrics could potentially come under pressure from increasing interest rates. Following the successful implementation of material acquisitions in the recent years, and in alignment with other rated peers with similar business risk strengths, S&P has adjusted the rating thresholds for the current rating level to EBITDA Interest Coverage Ratio sustainably above 1.8x (down from 2.4x) and Net Debt to Net Debt plus Equity below 60% (up from 55%).