S&P rates Akelius notes BBB-

S&P said it assigned a BBB- long-term issue rating to the proposed senior unsecured notes to be issued by Akelius Residential Property AB.

The completion and size of the transaction will be subject to market conditions, but the agency said it anticipates that it will be benchmark size, the agency said.

The proceeds will be used for general corporate purposes and to repay outstanding secured debt, S&P said.

The agency also said it raised the ratings to BBB- from BB+ on the company's outstanding €300 million senior unsecured notes due in 2020 and the SEK1.5 billion senior unsecured notes due in 2019.

S&P said it aligned the ratings on the senior unsecured debt in line with the company’s BBB- corporate credit rating based on expectations that the company's secured debt will decrease further and its ratio of secured debt-to-total assets will be less than 25% in the next 12 months.

The company has significantly reduced its ratio of secured debt-to-total debt during the past few years thanks to its refinancing activities and access to unsecured debt in debt capital markets, the agency said, as well as recent property disposals.

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