Today, Nordic Credit Rating has assigned an 'BBB' issue rating on Sweden-based Fastighets AB Stenvalvet (publ)'s senior unsecured bond.
The rating reflects that the bond is subordinated to existing senior secured debt and that the company's current debt is mostly secured bank debt. Our 'BBB' rating assigned on the issue is also applicable to all future bonds issued within the company's SEK 5bn Medium Term Notes (MTN) program.
As of 30 Sep 2019, the company had SEK 6.2bn in outstanding debt, excluding subordinated shareholder loans which we view as equity. The company also reported property values of SEK 12.5bn and a net loan-to-value of 50%. As noted in our Q3 2019 comment published 19 Nov 2019, we expect the leverage to come down in the fourth quarter given settlements of transactions in Q3 and remain below 50% through 2020.
The 'BBB+' long-term issuer rating on Stenvalvet remains unchanged.
Our full analysis of Stenvalvet, published 14 May 2019, can be found here:
https://nordiccreditrating.com/issuer/fastighets-ab-stenvalvet-publ
If you have any questions, please contact:
Mille O. Fjeldstad, credit rating analyst, +4799038916, mille.fjeldstad@nordiccreditrating.com
Daniel Johansson, credit rating analyst, +46732324378, daniel.johansson@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.