S&P Global places SBB on Credit Watch Negative
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, ilija@sbbnorden.se
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.
About Samhällsbyggnadsbolaget i Norden AB (publ)
The company’s strategy is to own, manage and develop community service properties throughout the Nordic region and rental apartments in growth regions in Sweden. Through the company's commitment and engagement in community participation and social responsibility, municipalities and other stakeholders find the company an attractive long-term partner. At the beginning of 2018, SBB was named the winner of the Real Estate Company of the Year Award for 2017. The company’s series B shares (short name SBB B) and D shares (short name SBB D) are listed on Nasdaq Stockholm, Large Cap. The company’s preference shares (SBB PREF) are listed on Nasdaq First North Premier Growth Market. Certified Adviser is Erik Penser Bank (contact: certifiedadviser@penser.se / +46 84638300). More information about the company is available at www.sbbnorden.se.