S&P hikes SBB

S&P said it raised its ratings on Samhallsbyggnadsbolaget i Norden AB (SBB) to CCC from SD, Selective Default, and its senior unsecured notes due 2026, 2027 and 2028 to CCC from D. The agency affirmed the CCC ratings on SBB’s 2025 and 2026 notes not involved in the company’s below-par tender offer.

S&P said it also boosted the issue ratings on the three euro subordinated bonds to C from D.

The upgrades follow the completion of SBB’s tender offer, which was considered the equivalent of default, and an assessment of its revised capital structure, the agency said. It still considers SBB’s capital structure to be unsustainable.

Over the next two years, about SEK 10 billion in debt will come due. “We believe its access to capital markets remains impeded. Asset sales continue to be the most likely path to SBB deleveraging and managing the maturity wall in the foreseeable future,” S&P said.

The outlook is negative.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.