Moody's rates Sagax Ba1

Moody's Investors Service said it assigned a first-time Ba1 corporate family rating to AB Sagax.

The outlook is positive.

The rating reflects the company's strong market position in the warehouse and light industrial sector in Sweden and Finland, Moody's said, and an experienced management team with a good track record and commitment to a financial policy that will further strengthen the company's credit profile.

The rating also considers the company's leading market position in the Nordic warehouse and light industrial real estate sector, the agency said.

The company's well executed business model focused on diversified, long dated rental cash flows from credit-worthy tenants is a key strength that underpins the portfolio's stability, Moody's said.

Counterbalancing these strengths is a short-dated debt maturity profile of about three years and a 65% reliance on secured lending in its funding mix, the agency said.

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