Fitch lifts SBB from junk

Fitch Ratings said it upgraded Samhallsbyggnadsbolaget i Norden AB's (SBB) long-term issuer default rating to BBB- from BB+ and removed it from Rating Watch positive.

The outlook is stable.

Fitch also upgraded SBB's proposed €300 million hybrid bond to BB from BB-.

These upgrades reflect SBB's disposal of a major asset and a change in the company's portfolio mix towards social infrastructure and residential properties, the agency said.

The proposed €300 million hybrid bond and the sale of a building will strengthen SBB's capital structure, Fitch said.

The agency said it forecasts the company's pro-forma net debt-to-EBITDA ratio to fall to lower than 10x at year-end 2019.

Measures taken by SBB have gradually simplified its capital structure and aligned it closer to a standard corporate financing structure, Fitch added.

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