Comments to Standard & Poor's rating of Vasakronan

Comments to Standard & Poor's rating of Vasakronan Vasakronan has chosen to secure a rating independent of the ownership link to the Swedish State. The rating is based entirely on Vasakronan's financial position. Vasakronan has received a credit rating of BBB+ from Standard & Poor's for long-term borrowing. Short-term borrowing received the highest domestic rating, K1. Standard & Poor's has now conducted a renewed assessment and Vasakronan retains its rating with the addition "negative outlook." The background is a review of all credit-rated European real estate companies. The appraisal is based on the strong improvement in the business climate in the real estate industry in recent years. The market trend in recent months has further accelerated. As a consequence, Standard & Poor's is urging caution in assessing the European real estate companies. Standard & Poor's assessment of the lowest limit for a cash-flow-based interest coverage ratio in most recent years has been a multiple of 2. This limit is now being increased to about 3. This means that a real estate company, in addition to having a solid equity ratio exceeding 35 percent, must also strive for a cash-flow-based interest coverage multiple of about 3. "We believe that the financial risk exposure within Vasakronan remains low," says Håkan Bryngelson, President of Vasakronan. "We consider it essential for Vasakronan to develop a market-leading position and to continue to pursue a growth strategy. This requires a high rate of investment." FINANCIAL FACTS The market value of Vasakronan's properties at December 31, 1999, was SEK 27.2 billion. The surplus value in the property portfolio was SEK 8 billion and the adjusted equity/assets ratio was 47 percent. Concurrently, the visible equity ratio was 38 percent. As of September 30, 2000, Vasakronan had a visible equity/assets ratio of 36 percent and an interest coverage multiple of 2.3, which is fully in accordance with the company's financial strategy. For further information, please contact: Håkan Bryngelson, President+46 8 783 21 05 Björn Lindström, Chief Financial Officer + 46 8 783 21 12 Bengt Möller, Senior Vice President, Corp Communications +46 8 783 21 19 ------------------------------------------------------------ This information was brought to you by BIT The following files are available for download:

About Us

For updated and current information on Vasakronan please go to or contact Peter Östman or Rebecca Liljebladh Thorell. Vasakronan is the leading property company in Sweden. Our strategy is to focus on Sweden’s major growth regions: Stockholm, Uppsala, Gothenburg, Malmö and Lund. We own and manage 178 properties with a total area of approx. 2, 4 million square metres (as of June 30, 2017). Many of the properties are situated in clusters and offer supplementary services to the tenants. The property portfolio is valued at SEK 121 billion. Environment and climate work are highly prioritized. Vasakronan is a carbon neutral company and is ISO 14001 certified. We were Sweden’s first property company to offer green leases and in 2013 we issued the world's first green corporate bond. The organization has operations in four regions – Stockholm, Uppsala, Gothenburg and Öresund. The number of employees is approximately 350. Vasakronan is jointly owned by the First, Second, Third and Fourth Swedish National Pension Funds.