Fitch turns Akelius outlook to negative

Fitch Ratings said it revised the outlook on Akelius Residential Property AB to negative from stalbe and affirmed its BBB issuer default rating and BBB+ senior unsecured rating.

The negative outlook reflects Akelius’ plan to pay an extra class A dividend of €1.3 billion by end-December to its parent, Akelius Apartments Ltd. The parent will remit equivalent funds in the form of shareholders' contributions when Akelius's 2024 and some 2025 debt maturities are due, Fitch said.

“This constrains Akelius's liquidity ahead of the bulk of its debt maturities in March and November 2024 and February and August 2025. These financial assets were originally intended to reduce Akelius's leverage, and some were monetized to prepay debt in 2023. The rating actions assume Akelius Apartments should remit equivalent funds as debt maturities loom. If not, an Akelius default would put the parent's equity at risk, or cause Akelius to quickly refinance maturing debt at higher cost and not de-leverage,” the agency said in a statement.

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