S&P ends watch on SBB

S&P said it affirmed its CCC+ ratings on Samhallsbyggnadsbolaget i Norden AB (SBB) and its senior unsecured debt, C rating on its subordinated hybrid bonds and ended the negative watch on them where they were placed on Nov. 17. The outlook is negative.

On Friday, SBB reported it accepted €417.247 million of tender offers, fully allocated to its nearest maturity, its nominal €700 million senior unsecured bond due in February, at a price of about 96.8 to par, which S&P said it considered treasury management and therefore opportunistic.

In a statement, S&P warned, “We believe SBB could be incentivized to launch additional buybacks at prices significantly below par in the near future instead of refinancing or reimbursing them. We may consider any such buyback, including another tender offer, as distressed and tantamount to default.”

The negative outlook reflects the position that SBB may not be able to implement its revised business and funding strategy as planned within the near term and obtain the funding to cover upcoming maturities in 2024 and 2025.

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