S&P rates Heimstaden Bostad notes BB+

S&P said it assigned a BB+ issue rating to the planned unsecured subordinated hybrid notes to be sold by Heimstaden Bostad AB. Heimstaden intends to issue about €1 billion of unsecured subordinated hybrid notes in one or two benchmark-sized tranches.

The rating is two notches under Hemstaden’s issuer rating reflecting the notes’ subordination and another for the ability to defer interest, the agency explained.

Part of the proceeds will be used to finance the recently announced acquisition of a portfolio of residential assets for SEK 92.5 billion.

The outlook is stable.

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