S&P slashes SBB

S&P said it lowered its ratings on Samhallsbyggnadsbolaget i Norden AB (SBB) and its senior unsecured notes to CCC+ from BB- and its subordinated hybrid bonds to CC from B-. The recovery rating of 3 on the senior unsecured debt remains unchanged.

“The downgrade reflects the short time before significant upcoming maturities are due, currently insufficient liquidity sources, and increased dependency on favorable economic circumstance such as generating sufficient asset disposals. On July 14, 2023, SBB reported its second-quarter results, with a drop in available cash on balance sheet to SEK 1.7 billion (versus SEK5 .3 billion in first-quarter 2023) and a slight increase in short-term debt maturities for the next 12 months to SEK 14.6 billion (versus SEK 14.2 billion in first-quarter 2023),” S&P said in a press release.

The agency noted about SEK 8.5 billion in bonds are due within the next seven months.

S&P also pointed out that it “understands that the company has entered discussions with bondholders on potential secured financing and accuracy of reset covenant test, though at very early stages.”

Additionally, late last month SBB's board of directors decided that the dividend for all share classes of about SEK 2 billion, approved by the 2023 annual general meeting in April, shall be distributed before June 28, 2024.

The outlook is negative.

© 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.