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Swedish Landlord SBB Buys Back €417 Million in Bonds to Improve Finances

Written by: Meredith Montgomery
Photo by: Midjourney at CW1 Repository

Last update: 27 november 2023

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S&P, a company that assesses how well other companies manage their money, has confirmed that Samhallsbyggnadsbolaget i Norden AB (SBB), a Swedish landlord facing financial troubles, still holds a not-so-great credit rating of CCC+.

This confirmation came after SBB repurchased approximately €417 million (which is about $455 million) worth of bonds that were originally due to be paid back in February. While SBB's credit outlook hasn't gotten worse, it remains negative, but they are no longer at risk of a potential downgrade to a "selective default" status.

According to S&P, SBB should be capable of paying off the remaining debt on unsecured notes due in February 2024 due to the bond buyback. However, SBB still faces significant debt challenges in 2024 and 2025, as they have limited available funds and face difficulty in accessing the capital markets.

To alleviate its financial strain and reduce debt costs, SBB is working on selling its assets to raise capital, part of which was used to repurchase the bonds, with the aim of avoiding expensive refinancing.

Source: Bloomberg


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