Bulletin: Swedish Sovereign Pension Restructuring Unlikely To Change Hemso's Credit Quality

This report does not constitute a rating action. STOCKHOLM (S&P Global Ratings) April 24, 2025--S&P Global Ratings today said that the Swedish government's recently proposed restructuring of the sovereign pension funds (AP funds) should not result in a material deviation in strategy and support for Hemso Fastighets AB (A-/Stable/A-2). The restructuring is unlikely to affect our rating on Hemso, which incorporates a three-notch uplift from our 'bbb-' assessment of Hemso's stand-alone credit profile (SACP). This is because we understand from the government's announcement that the proposed change is intended to be mostly administrative. We will monitor the situation and should be able to confirm the potential support for Hemso once we have more clarity on the restructuring. In March 2025,

...April 24, 2025 This report does not constitute a rating action. STOCKHOLM (S&P Global Ratings) April 24, 2025--S&P Global Ratings today said that the Swedish government's recently proposed restructuring of the sovereign pension funds (AP funds) should not result in a material deviation in strategy and support for Hemso Fastighets AB (A-/Stable/A-2). The restructuring is unlikely to affect our rating on Hemso, which incorporates a three-notch uplift from our '###-' assessment of Hemso's stand-alone credit profile (SACP). This is because we understand from the government's announcement that the proposed change is intended to be mostly administrative. We will monitor the situation and should be able to confirm the potential support for Hemso once we have more clarity on the restructuring. In March 2025, the Swedish government announced a reform to its sovereign pension funds with the stated purpose of ensuring "efficient capital management". Currently, there are five sovereign wealth funds...

Bulletin