Our 'BBB+' issuer and issue ratings for Vacse AB (publ) are unchanged following the publication of its first-quarter results.
Continued stable development
The Q1/20 report for Vacse was mostly in line with our expectations. Revenues were SEK 94m (compared to SEK 90m in Q1/19) and EBITDA was SEK 69m (SEK 68m), corresponding to an EBITDA margin of 74% for the quarter (76%). The company has decreased their average interest rate to 1.7% during the quarter, resulting in a higher interest coverage ratio of 5.4x as of 31 Mar. 2020. The company reports that its project properties are developing according to plan. Vacse has decreased the vacancy in its largest project, Färgskrapan (to be finalised in the second half of 2020), to 12% during the quarter. The average remaining lease term for the management property portfolio is 9.9 years (10.5 years Q4/19) and the occupancy rate is 100%
Financial position remains strong, credit metrics in line with the rating
During the quarter, Vacse slightly lowered the value on its property portfolio by SEK 45.6m, increasing its loan to value to 41.1% from 40.7% at year-end.
Vacse has prolonged its debt maturity profile to 3.5 years as of 31 Mar. 2020 via a SEK 400 secured green loan from the Nordic Investment Bank in Jan. 2020. The company has a secured bank loan maturing April 2021, and only minor short-term debt of which mostly amortisation on loans. Given SEK 133m in cash and an unutilised revolving credit facility of SEK 500m as of 31 Mar. 2020, the liquidity profile remains adequate.
This commentary does not reflect a rating action.
If you have any questions, please contact:
Mille O. Fjeldstad, credit rating analyst, +4799038916, mille.fjeldstad@nordiccreditrating.com
Sean Cotten, chief rating officer, +46735600337, sean.cotten@nordiccreditrating.com