Fitch rates SBB bond BBB-

Fitch Ratings said it assigned a senior unsecured rating of BBB- to Samhallsbyggnadsbolaget i Norden AB (SBB).

The rating is the same as the company's long-term issuer default rating of BBB- with a stable outlook.

Fitch also said it assigned an expected senior unsecured rating of BBB- to SBB's prospective €500 million unsecured bond.

The proceeds will be used to repay secured financings within the group and for general corporate purposes, the agency said.

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

All unsecured bonds are now issued by the parent company following an issuer swap from a legacy subsidiary issuer, the agency explained.

Preference shares in SBB's subsidiary Hogkullen, which are treated as debt, and some of SBB's preference shares that attracted 50% equity credit, have been replaced by the newly issued class D ordinary shares, Fitch added.

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