S&P revises Sato view to negative

S&P said it revised its outlook for Sato to negative from stable and affirmed its BBB issuer rating.

“Sato's parent company, Fastighets AB (Balder), announced on Oct. 13, 2021, that it intends to submit a mandatory offer to the remaining shareholders of Norwegian commercial real estate player Entra ASA. Given uncertainties with regards to the acceptance level and subsequently the funding mix required to maintain Balder's credit metrics in line with our current rating, we revised our outlook on Balder to negative from stable,” S&P said in a press release.

Since the agency said it considers Sato a core subsidiary of Balder is revised the outlook and affirmed the rating to bring it in line with its parent.

S&P said it could downgrade Sato if Balder's leverage increases further and beyond the threshold for the current rating over the next 12-24 months.

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