Moody's assigns Castellum notes Ba1

Moody's Investors Service said it assigned a Ba1 rating to Castellum AB’s planned perpetual benchmark size subordinated (hybrid) notes.

The Ba1 rating is two notches lower than the company’s Baa2 senior unsecured rating. It reflects the deeply subordinated nature of the hybrid notes, which rank higher than ordinary shares but equal with Castellum’s preference shares, Moody’s said.

"The hybrid bond issue is for financing Castellum's business going forward, among other things the financing of Castellum's launch of the public offer to acquire all shares in Kungsleden AB. The hybrid bond issuance demonstrates Castellum's willingness to adhere to its financial policy to protect its balance sheet which is credit positive," said Maria Gillholm, a Moody's vice president, senior credit officer and lead analyst on Castellum.

The outlook is stable.

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