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S&P assigns rating to Finland's SATO

S&P Global Ratings assigned a BBB long-term issuer credit rating to Finnish real estate company SATO Oyj, with a stable outlook.

The rating agency also assessed the standalone credit profile of the company at bbb-, and assigned a BBB rating to its senior unsecured bonds.

The rating reflects SATO's integral role in the strategy of Swedish real estate company Fastighets AB Balder, which owns 54.4% of SATO; nearly €4.0 billion worth of residential rental portfolio in Finland; and its strong EBITDA interest coverage of about 4x, among other factors. Ratings expects Balder to support its subsidiary in the event of financial distress.

The rating agency views favorably the location of most of SATO's portfolio in the Helsinki metropolitan area and high occupancy rate of 98%, as of June 30.

The stable outlook reflects Ratings' expectation that the consolidated group, at the Balder level, will retain EBITDA interest coverage of 3.0x and a debt-to-debt-plus-equity ratio below 60%.

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.