S&P revises Akelius outlook to stable

S&P said it revised its outlook for Akelius Residential Property AB to stable from negative and affirmed its ratings, including the BB+ subordinated debt rating.

“Akelius plans to continue repaying upcoming debt maturities through its €2.4 billion of available liquidity sources, while still tempering its investment pace, and should therefore have limited refinancing needs over the coming 24 months.

“As a result, we expect the company's EBITDA-interest-coverage ratio to improve and stabilize toward 2.4x and above over our forecast horizon, as the rise in its cost of debt will be moderate and gradual while we expect robust EBITDA. We also expect the company's debt-to-debt-plus-equity to remain quite low at less than 40% over the next 24 months,” S&P said in a statement.

The agency said it estimates Akelius’ debt to debt-plus-equity on a net basis to stand at about 27%-29% in 2023, 30%-34% in 2024, and 32%-37% in 2025.

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