Akelius Residential Property has continued to strengthen its portfolio of almost €10 billion in global metropolitan cities in 2016 and 2017. Through active disposals in 2016 and 2017, repayment of a loan to the parent company, and positive asset revaluation, Akelius reduced its leverage more than we anticipated. We are therefore raising our ratings on Akelius to 'BBB/A-2' from 'BBB-/A-3', our regional scale ratings to 'K-2' from 'K-3', and the issue ratings on the senior unsecured debt to 'BBB' from 'BBB-'. The stable outlook reflects our expectation of continued favorable demand for midsize residential apartments in most of Akelius' markets where supply remains limited, and that Akelius will maintain stable S&P Global Ratings-adjusted debt to debt plus equity of less
