Akelius Residential Property AB continued to strengthen its portfolio of almost €9 billion in global metropolitan cities in 2016. Due to active disposals and positive asset revaluation, the company reduced its leverage significantly. We are therefore revising our outlook on Akelius to positive from stable and affirming our 'BBB-/A-3' global scale and 'K-3' regional scale ratings on the company. The positive outlook indicates that we may raise the ratings within the next 12 to 24 months if Akelius' deleveraging, in combination with strong cash flow generation, bring its S&P Global Ratings' adjusted interest coverage ratio close to 2x or above, while keeping debt to debt plus equity significantly below 60% and liquidity adequate. On March 3, 2017, S&P Global Ratings
