Nordic Credit Rating covers a wide range of Swedish real estate companies that focus on a variety of property types. Today, the agency outlined its view of the relative strengths and weaknesses of some Swedish industrial and logistics property managers, including two that it rates.
"These property managers focus on growth and have high financial risk tolerance, with comparatively high financial leverage. This approach limits their ability to secure additional bank financing and constrains financial flexibility." said NCR credit analyst Gustav Nilsson. "However, owing to the stronger cash flows in this subsegment, these companies have managed the effect of rising interest rates better than others."
NCR believes that cash flows in the segment could be at risk if inflation resurfaces and demand erodes. The rating agency believes that economic and geopolitical factors will determine the segments' operational strength, with diversity across markets and tenants safeguarding cash flows in economic downturns.
Contacts:
Gustav Nilsson, analyst, +46735420446, gustav.nilsson@nordiccreditrating.com
Yun Zhou, analyst, +46732324378, yun.zhou@nordiccreditrating.com