Fitch places SBB on watch

Fitch Ratings said it placed Samhallsbyggnadsbolaget i Norden AB's (SBB) long-term issuer default rating and senior unsecured debt ratings of BB+ on rating watch negative.

“The RWN reflects heightened refinance risk, and execution risk to receiving disposal proceeds, which have been compounded by certain bondholders claiming that there may be a financial covenant breach. Fitch calculates that SBB's existing liquidity covers scheduled debt maturities for the next 12 months,” the agency said in a press release.

Additionally, Fitch said Sweden’s financial supervisory authority reported it is probing SBB's compliance with international accounting standards concerning valuations of acquired properties from Trygge Barnehager and Laeringsverkstedet, treatment of its acquisition of Amasten and Offentliga Hus, and ESMA rules on reporting of alternative performance measures. “SBB has maintained its reporting and valuations are correct.”

The agency said it aims to resolve the RWN by the end of August.

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