Nordic Credit Rating said today that it had assigned a 'BB-' issue rating to senior unsecured debt issued by Sweden-based Stenhus Fastigheter i Norden AB (publ). The rating is applicable to outstanding and future senior unsecured instruments issued by the company. The 'BB' long-term issuer rating is not affected by this rating action and remains on a negative outlook.
Rationale
On 6 Oct. 2023, Stenhus Fastigheter announced that it had issued a SEK 500m 3-year senior unsecured green bond. In line with our criteria, we rate Stenhus Fastigheter's senior unsecured instruments one notch below the 'BB' long-term issuer rating. The issue rating reflects our expectations that the company will keep its gross secured loan-to-value ratio (LTV) above 40% on a sustained basis. Gross secured LTV stood at 53% as of 30 Jun. 2023 and is not materially affected by the new issue.
| Rating list | To | From |
|---|---|---|
| Long-term issuer credit rating: | BB | BB |
| Outlook: | Negative | Negative |
| Short-term issuer credit rating: | N4 | N4 |
| Senior unsecured issue rating: | BB- | None |
Contacts:
Yun Zhou, analyst, +46732324378, yun.zhou@nordiccreditrating.com
Gustav Nilsson, analyst, +46735420446, gustav.nilsson@nordiccreditrating.com
The methodology documents used for this rating are NCR's Corporate Rating Methodology published on 8 May 2023, NCR's Rating Principles published on 24 May 2022 and NCR's Group and Government Support Rating Methodology published on 18 Feb. 2022. For the full regulatory disclaimer please see the rating report.