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.”
If we take real estate crisis in #Spain and #USA as a blueprint, the downward trend in the Chinese #housing market could continue for another 2 years. In the face of the debt overhang, the usual policy means will no longer work as usual. #China Balance sheet #recession ahead? pic.twitter.com/eiHGS35WOg
— 🏳️🌈 Patrick Krizan 🇺🇦 (@PatrickKrizan) August 23, 2023
For the first time in history, median new home sale prices are about to dip below existing home prices. pic.twitter.com/niGyoSE4pu
— zerohedge (@zerohedge) August 22, 2023
As mortgage rates soar over 7%, an unaffordable housing market is becoming even more expensive
The real story on Rent pic.twitter.com/mCX5rNuVMi
— Win Smart, CFA (@WinfieldSmart) August 23, 2023
— Win Smart, CFA (@WinfieldSmart) August 23, 2023
h/t Simian_Stacker