S&P changes Akelius view to positive

S&P said it revised the outlook on Akelius Residential Property AB to positive from stable and affirmed its BBB-/A-3 long- and short-term corporate credit ratings.

The agency also affirmed the company’s K-3 short-term Nordic regional scale rating, BBB- unsecured debt rating and A-3 and K-3 short-term commercial paper ratings.

S&P said the actions reflect its view that Akelius' credit metrics may strengthen more than currently anticipated, as a result of stronger cash flow generation from its focus on metropolitan areas across the globe, while keeping a favorable split of debt to equity for new acquisitions.

The agency believes its view of Akelius' financial risk profile could improve closer to that of higher rated peers in the BBB category, such as Balder, which enjoys a solid EBITDA interest coverage ratio of well above 2 times.

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