Fitch snips Heimstaden Bostad

Fitch Ratings said it downgraded Heimstaden Bostad AB's long-term issuer default and senior unsecured ratings to BBB- from BBB and subordinated notes to BB from BB+. The agency removed the ratings rating watch negative and assigned a negative outlook.

“The downgrade and negative outlook reflect continued pressure on Heimstaden Bostad's liquidity during this time of its constrained access to capital; reduced interest coverage from cash rents' growth lagging more immediate cost inflation including increased interest rates; and limited visibility on new equity for deleveraging, which would otherwise have alleviated these financial constraints,” the agency said in a press release.

Heimstad is selling some of its assets, which though not a substitute for an equity raise, will help the company lower its leverage in 2024 and 2025, Fitch noted.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.