Moody's assigns A3 to Rikshem

Moody's Investors Service said it assigned a first-time A3 long-term issuer rating to Rikshem AB, one of the largest private residential companies in Sweden.

"Rikshem's rating reflects its activities in the Swedish regulated residential market (70% of fair value), partially offset by a relatively high debt/assets ratio of around 50%. The Swedish rental housing market is one of the most stable asset classes in the European real estate industry, with high demand and very limited supply which supports rents and market values. In addition, with the remaining 30% of its assets the company is focussing on public service properties; nursing homes and schools with long term rental contracts and where the rents are directly or indirectly paid by the Swedish municipalities and hence adds a relatively stable cash flow profile,” Moody’s said in a press release.

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.