S&P rates Fastighets notes BB+

S&P said it assigned a BB+ long-term issue rating to the €350 million notes due in 2078 issued by Fastighets AB Balder.

The notes are optionally deferrable, subordinated hybrids, the agency noted.

The proceeds will be used to replace the company's existing preference shares, S&P said.

The agency said it classifies the notes as having intermediate equity content until their first call dates in 2023.

This is because they meet the criteria in terms of their subordination, permanence and optional deferability during this period, S&P said.

The rating on the notes is two notches lower than the company's BBB long-term rating. This reflects one notch for the subordination of the notes and an additional notch for payment flexibility to reflect that the deferral of interest is optional, the agency said.

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