S&P Global Ratings affirmed the AA- long-term and A-1+ short-term issuer credit ratings assigned to Swedish real estate company Lejonfastigheter AB, with a stable outlook.
The rating agency also affirmed the company's K-1 Nordic regional scale ratings.
The decision was made on the basis of S&P's assessment that Lejonfastigheter will register strong, but somewhat decreasing, financial performance, owing to its stable rental relationship with its owner, the Municipality of Linköping.
Lejonfastigheter's "very strong" enterprise risk profile and strong financial risk profile were also cited as factors influencing the affirmation.
S&P projects that the company will report a fall in debt sustainability metrics, comprising debt to EBITDA and EBITDA interest coverage, through 2020 and that it would receive extraordinary government support from the Municipality of Linköping if needed.
The stable outlook is indicative of S&P's expectation that Lejonfastigheter will log strong and predictable operating cash flows thanks to its high proportions of public-sector tenants, as well as note-stable debt servicing metrics over the following two-year period.
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.
