Bulletin: Real Estate Company Akelius Residential Property's Temporary Dip In Interest Coverage Is Ratings Neutral

FRANKFURT (S&P Global Ratings) March 18, 2019--S&P Global Ratings said today that the marginal decrease in its adjusted EBITDA interest coverage for Akelius Residential Property AB (BBB/Stable/A-2), following the real estate company's full-year 2018 results, is only temporary. We believe the ratio will improve in the next few quarters, thanks to a strengthening EBITDA base on the back of net portfolio purchases in 2018 and the company's anticipated deleveraging. As such, our ratings and outlook on the company remain unchanged. Sweden-headquartered Akelius published its full-year 2018 results on March 15, 2019, and we observed a drop in its S&P Global Ratings-adjusted ratio of EBITDA interest coverage to 1.5x. This stems from higher operating and administrative expenses for the reporting period

...FRANKFURT (S&P Global Ratings) March 18, 2019--S&P Global Ratings said today that the marginal decrease in its adjusted EBITDA interest coverage for Akelius Residential Property AB (###/Stable/A-2), following the real estate company's full-year 2018 results, is only temporary. We believe the ratio will improve in the next few quarters, thanks to a strengthening EBITDA base on the back of net portfolio purchases in 2018 and the company's anticipated deleveraging. As such, our ratings and outlook on the company remain unchanged. Sweden-headquartered Akelius published its full-year 2018 results on March 15, 2019, and we observed a drop in its S&P Global Ratings-adjusted ratio of EBITDA interest coverage to 1.5x. This stems from higher operating and administrative expenses for the reporting period than previously anticipated. It also factors in the less-than-full-year EBITDA contribution from Akelius' recently acquired assets. However, last year's portfolio purchases of approximately net 1...

Bulletin