S&P raises Industrivarden to A+

S&P said it raised he long-term issuer credit rating on Industrivarden AB to A+ from A.

The outlook is stable.

At the same time, the agency affirmed its A-1 short-term issuer credit rating and K-1 short-term Nordic regional scale rating on the company.

S&P said the upgrade follows Industrivarden's announcement that it sold part of its shares in SSAB AB (BB-/positive/B) and will use the proceeds of about SEK 3 billion (about $340 million) to reduce its net debt.

After the transaction, the agency forecasts Industrivarden's net debt will be about SEK 6.9 billion and the portfolio value at about SEK 107 billion.

These figures translate into an LTV ratio of around 6.4%, down from about 10% at year-end 2017. That ratio is well in line with the company's financial policy, which states that the LTV ratio should be in the range of 0%-10%, S&P explained.

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