Nordic Credit Rating said today that it had assigned a 'BBB' issue rating to senior unsecured debt issued by Swedish property manager Bonnier Fastigheter AB (Bonnier Fastigheter). The issue rating is applicable to future senior unsecured instruments issued by the company.
Rationale
The issue rating reflects Bonnier Fastigheter's low net loan-to-value (LTV) ratio of 21% as of 31 Dec. 2020. The company's low financial gearing leads us to expect meaningful recovery prospects for unsecured bondholders in an event of distress. For this reason, we apply no downward notching to the rating on Bonnier Fastigheter's senior unsecured instruments, even though secured debt accounts for more than 50% of the company's total debt.
If the company's net LTV were to increase above 40%, with secured debt accounting for more than 50% of outstanding debt at the same time, we would expect to revise the ratings on its senior unsecured obligations down by one notch.
The 'BBB' long-term issuer rating on Bonnier Fastigheter is not affected by this rating action and remains unchanged.
| Rating list | To | From |
|---|---|---|
| Long-term issuer credit rating: | BBB | BBB |
| Outlook: | Stable | Stable |
| Short-term issuer credit rating: | N-1+ | N-1+ |
| Senior unsecured issue rating: | BBB | NR |
If you have any questions, please contact:
Marcus Gustavsson, credit rating analyst, +46700442775, marcus.gustavsson@nordiccreditrating.com
Sean Cotten, chief rating officer, +46735600337, sean.cotten@nordiccreditrating.com
The methodology documents used for this rating are NCR's Corporate Methodology published on 14 Aug. 2018 and NCR's Rating Principles published on 16 Sep. 2019. For the full regulatory disclaimer please see the rating report.