Housing Bubble 2.0 is bursting worldwide

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Swedish Landlord SBB Cut Five Steps Deep Into Junk by Fitch

(Bloomberg) — SBB, the landlord at the center of Sweden’s commercial property crisis, was slammed with a downgrade of five steps further into junk by Fitch Ratings in a fresh blow for its new chief executive’s efforts to stabilize finances.

Fitch on Monday slashed the issuer default rating of Samhallsbyggnadsbolaget i Norden AB — as the company is formally known — to B-. That’s one step higher than peer S&P Global Ratings, which last month lowered its credit grade on the company to CCC+ with a negative outlook.

While Fitch noted that SBB’s portfolio remains solid, the downgrade came with a warning that more cuts could be on the way amid struggles to raise cash to repay bonds.

“Fitch points out several of the drivers we have highlighted as important to deal with in the near term,” SBB Chief Executive Officer Leiv Synnes said. “One such driver is liquidity to handle next year’s maturities. I am confident in the actions we are taking to improve SBB’s situation and outlook.”

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As mortgage rates soar over 7%, an unaffordable housing market is becoming even more expensive

 

h/t Simian_Stacker