|
Loss-making SBB is at the centre of a Swedish property crash,
having racked up vast debt by buying public real estate,
including social housing, government offices, schools and
hospitals.
"The downgrades reflect SBB's third quarter results and its
tight liquidity, including insufficient existing liquidity to
reduce refinancing risk after the end of the third quarter 2024,
and unfavorable real estate and capital market conditions,"
Fitch said in a statement.
"SBB continues to undertake asset disposals but execution risk
remains high," the ratings agency added.
SBB did not immediately respond to a request for comment.
Fitch already in May cut the group to below investment grade
status for the first time and again downgraded the company in
August.
Fitch on Wednesday said SBB was unlikely to have capital market
access to refinance its unsecured bonds, adding that without an
ability to tap bond markets, the real estate company would have
to sell assets to meet debt maturities.
Rival ratings agency S&P on Friday said it had placed SBB on
credit watch for a potential downgrade to a selective default
over the company's offer to use proceeds from a property sale to
buy back debt for up to $650 million.
If debt is bought at a substantial discount to the original
value, this could be considered tantamount to default, S&P said.
($1 = 10.4988 Swedish crowns)
(Reporting by Louise Breusch Rasmussen in Copenhagen, Marie
Mannes in Stockholm, editing by Anna Ringstrom, Terje Solsvik
and Bernadette Baum)
[© 2023 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
