Moody's assigned a first-time Baa2 long-term issuer rating to Swedish real estate company Humlegården Fastigheter AB, with a stable outlook.

The rating agency said the Baa2 rating reflects Humlegården's 25 billion-kronor office portfolio in attractive areas of Stockholm; "well-executed" business model; relatively low market value leverage of 35% as of Dec. 31, 2018; abundance of unencumbered assets; and adequate liquidity.

The stable outlook reflects Moody's expectation that Humlegården will remain focused on offices in prime locations in the inner city and attractive suburbs, and will maintain high occupancy rates. The rating agency also expects the company's leverage to remain below 40% and interest coverage to remain about 5.0x, among other expectations.