Fitch rates Heimstaden hybrid BB-

Fitch Ratings said it assigned Heimstaden AB's planned €300 million of perpetual capital securities an expected rating of BB-.

“The rating is line with Heimstaden AB's existing subordinated debt rating,” Fitch said in a press release.

The hybrid is rated two notches below Heimstaden's BB+ long-term issuer default rating. “This reflects the hybrid's deeply subordinated status, ranking behind senior creditors and senior only to equity (ordinary and preference shares), with coupon payments deferrable at the discretion of the issuer and no formal maturity date,” the agency said.

Heimstaden will use the proceeds to finance some of its capital contribution to subsidiary company Heimstaden Bostad AB, which will use these funds for the acquisition of a large portfolio of residential property from Akelius Residential Property AB .

The outlook is stable.

© 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.