S&P Global Ratings affirmed the AA+ long-term and A-1+ short-term issuer credit ratings on Specialfastigheter Sverige AB with a stable outlook.
The K-1 short-term Nordic regional scale rating on the Swedish public property provider was also affirmed.
The decision was taken on the back of Specialfastigheter's aa- stand-alone credit profile as well as S&P's assessment that the Kingdom of Sweden, as the company's owner, will bail it out in the event of financial distress.
Specialfastigheter's maintenance and construction program will be offset by its sustained strong profitability, which will support interest coverage above 5x and debt to EBITDA of about 11x through 2019, according to the report.
The company is viewed to have a strong enterprise risk profile owing to a tenant base consisting almost exclusively of central government agencies. The stable outlook also mirrors S&P's expectation that the profile will boost financial performance, debt sustainability and internal liquidity.
S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.