Moody's affirmed its ratings on Sweden-based real estate company Fastighets AB Balder and revised the ratings outlook to stable from positive.

Specifically, the rating agency affirmed Balder's Baa3 long-term issuer and senior unsecured ratings and its Ba2 junior subordinate rating.

Moody's said the Baa3 long-term issuer rating mainly takes into account Balder's large and diversified portfolio by geography and property type, low vacancies across the portfolio and a large share of more stable residential properties, among other factors.

These strengths are somewhat counterbalanced by several factors, including a high net debt to EBITDA of 15x and an increased effective leverage for the rating when considering commercial property peers.

The outlook revision factors in the company's strategy of prioritizing portfolio growth that has kept it from de-levering to levels required for a higher rating.

The stable outlook mirrors the rating agency's expectation that Balder will have an effective leverage hovering in a 50%-to-55% range and that the company will maintain an adequate liquidity profile.