S&P lowers Investment Grade Rating to ’BBB-’ for Heimstaden Bostad, Assigns Negative Outlook
S&P Global Ratings lowers Heimstaden’s subsidiary Heimstaden Bostad’s long-term issuer credit rating to ‘BBB- ‘from ‘BBB’ and assigns Negative Outlook.S&P attributed the one-notch downgrade to forecasted declines in their interest coverage ratio (ICR) as they stated that “forecasts won't maintain EBITDA interest coverage of above 1.8x over the next 12-24 months”.Despite the downgrade, S&P states in their upside scenario that the outlook would be resolved if the “ICR remains close to 1.8x, Debt / Debt Plus Equity remains at or below 60%, and refinancing conditions are favourable, or