S&P rates SBB hybrids BB

S&P said it assigned a BB preliminary rating to Samhällsbyggnadsbolaget i Norden AB's (SBB) issue of €300 million euro-denominated subordinated hybrid notes.

The rating reflects the issue's subordination and optional interest deferability, the agency said.

The company also issued roughly 1 billion in Swedish krona of common equity this year, which the company will use for portfolio growth and optimization, the agency said.

S&P also said placed the BB long-term issuer credit ratings on SBB on CreditWatch with positive implications, reflecting the potential for a two-notch upgrade if the refinancing is successful, S&P said.

The CreditWatch will be resolved in the coming weeks once the transaction has been completed, the agency said.

The planned refinancing is expected to result in substantial strengthening of the company's credit profile, S&P said.

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