New financial and operational targets and management changes
We view the company's new financial and operational targets as well as the announced changes to the management team as positive developments for Offentliga Hus i Norden AB (publ). We note that the targets are somewhat above our expectations and could affect our view of the company if progress is made towards the new goals.
Offentliga Hus (NCR long-term rating 'BB-') reported this week that the company is making changes to its management and has acquired a team of three people from management positions at Stendörren Fastigheter. Further, the company presented a set of financial and operational targets which will, if/when reached, provide more headroom to the company's outstanding bond covenants. The new set of operational targets include a new focus on sustainability as well as a minimum EBITDA margin of 70%. Concerns about the company's distance to covenants and sustainability was commented in our initial rating report for Offentliga Hus (find the report here).
This commentary does not reflect a rating action.
Analyst contact details:
Mille O. Fjeldstad, +47 99 03 89 16, mille.fjeldstad@nordiccreditrating.com
Michael Andersson, +46 732 32 43 22, michael.andersson@nordiccreditrating.com