S&P Global Ratings affirmed its long- and short-term issuer credit ratings on Specialfastigheter Sverige AB at AA+ and A-1+, respectively, with a stable outlook.
The rating agency also affirmed its short-term Nordic regional scale rating on the Swedish property company at K-1.
S&P noted that the company's liquidity position has grown weaker owing to increased financing through commercial paper debt, but the company is cushioned by its strong enterprise and financial risk profiles, in addition to its strong relationship with its owner, the central government of Sweden.
The rating agency attributed the affirmation to the expectation that the company will receive "timely and sufficient extraordinary support" from the government of Sweden in case of any financial distress.
The stable outlook reflects S&P's expectation that Specialfastigheter's strong enterprise risk profile will support sustained strong EBITDA margins over the next two years. This will help the company obtain robust debt sustainability and strong internal liquidity.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings. The original S&P Global Ratings documents referred to in this news brief can be found here.