Moody’s assigns Storskogen Ba1

Moody's Investors Service said it assigned a Ba1 corporate family rating and a Ba1-PD probability of default rating to Storskogen Group AB.

“The first-time rating of Storskogen is underpinned by its diversified portfolio of small and mid-sized companies in Sweden as well as a conservatively leveraged balance sheet,” said Daniel Harlid, a Moody’s vice president, senior analyst and the lead analyst for Storskogen, in a press release.

Storskogen’s growth-oriented investment strategy, where the book value of the parent company’s non-current financial assets grew to SEK 17 billion in 2021 from SEK 5.9 billion in 2020 and is expected to grow during 2022, constrains the rating, the agency noted.

The outlook is stable, indicating that Storskogen’s high-investment phase will continue over the next 12-18 months which will entail a continued increase in the company’s debt load, but that it will sustain market value-based leverage under 30%, Moody’s said.

In September, secured a €1 billion syndicated multicurrency revolver with a three-year tenor, which Moody’s is not rating.

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