Södra’s credit rating upgraded to BBB+
Södra’s strong financial position leads to credit rating upgrade Nordic Credit Rating has now assigned Södra a credit rating of BBB+.
In its 2024 rating process, Nordic Credit Rating decided to upgrade Södra’s credit rating to BBB+ on the grounds that Södra has maintained its strong financial position despite the recession and that Södra’s balance sheet is sufficiently robust to withstand even weaker market conditions. In 2021, Nordic Credit Rating assigned Södra a credit rating of BBB, which has since remained stable.
“An upgraded credit rating is proof that Södra’s balance sheet and financial position are moving in the right direction, both now and in the future. The long-term process to develop our industrial portfolio, secure our efficiency and take new steps through digitisation is yielding results. Quite simply, Södra stands very stable, without any risk of standing still,” said CFO Magnus Örnberg.
The credit rating reflects high historical profitability, healthy cash flows, strong liquidity and low leverage. In addition, the cooperative shows its strength when business model and ownership structure are highlighted as positive factors in this context. Södra’s strategy, which includes making more from every tree, provides a solid basis for further improvements and investments in new product areas, with cross-laminated timber and lignin as good examples.
Södra's Pressroom+46 (0)470 - 890 90press@sodra.comSödra was founded in 1938 on the idea that we are stronger together. We are now the largest forest-owner association
in Sweden, with more than 50,000 family forest owners as members. Together, the members of Södra own a world-leading industrial operation that processes forest raw material into renewable products such as pulp, timber, building systems, liquid bioproducts and energy. About 3,400 people are employed in our forest industry and in 2023, Södra generated sales of SEK 29billion. Our products are exported all over the world and together, we are contributing to a more natural way of living. Rooted in the forest, we grow the future.
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