Research Update: Residential Property Firm Akelius Outlook Revised To Stable From Negative On Sustained Low Leverage; Affirmed At 'BBB'

Akelius plans to continue repaying upcoming debt maturities through its €2.4 billion of available liquidity sources, while still tempering its investment pace, and should therefore have limited refinancing needs over the coming 24 months. As a result, we expect the company's EBITDA-interest-coverage ratio to improve and stabilize toward 2.4x and above over our forecast horizon, as the rise in its cost of debt will be moderate and gradual while we expect robust EBITDA. We also expect the company's debt to debt-plus-equity to remain quite low at less than 40% over the next 24 months. Consequently, we revised our outlook on Akelius Residential Property AB to stable from negative and affirmed our 'BBB/A-2' long and short-term issuer credit ratings on the

...- Akelius plans to continue repaying upcoming debt maturities through its 2.4 billion of available liquidity sources, while still tempering its investment pace, and should therefore have limited refinancing needs over the coming 24 months. - As a result, we expect the company's EBITDA-interest-coverage ratio to improve and stabilize toward 2.4x and above over our forecast horizon, as the rise in its cost of debt will be moderate and gradual while we expect robust EBITDA. We also expect the company's debt to debt-plus-equity to remain quite low at less than 40% over the next 24 months. - Consequently, we revised our outlook on Akelius Residential Property AB to stable from negative and affirmed our '###/A-2' long and short-term issuer credit ratings on the company, as well as its existing issue ratings. - The stable outlook reflects our expectation that the company's occupancy and like-for-like growth in rental income should remain robust, while its EBITDA-interest-coverage ratio should...

Research Update