S&P confirmed its CCC+ credit rating of Samhallsbyggnadsbolaget i Norden AB after the struggling Swedish landlord bought back about €417 million ($455 million) of bonds that were scheduled to mature in February.
While SBB’s credit outlook remains negative, the company is no longer on watch for a possible downgrade to selective default, the ratings agency said in a statement Monday.
Read More: Landlord SBB Buys Back €417 Million of Bonds to Ease Crunch
S&P Global Ratings said the landlord should be able to reimburse the remainder of unsecured notes that come due in February 2024 after the buy-back. The company, however, “continues to face significant debt maturities over 2024 and 2025” and “its liquidity sources remain limited and we believe its access to capital markets remains remote,” the agency said.
SBB, which has been at the center of property turmoil in Sweden as borrowers struggle to refinance debt amassed in the cheap-money era, is trying to raise capital by selling assets, and used some of the proceeds to buy back bonds in an attempt to cut debt costs and avoid expensive refinancing.
