...- On Sept. 26, 2021, Akelius Residential Property AB has announced that it will sell a portfolio of residential assets to Swedish peer Heimstaden Bostad AB for about 9.1 billion. - The disposal would significantly decrease Akelius' asset base, and pro forma the transaction, the property portfolio would be worth about 5.4 billion at year-end 2021, compared with 12.9 billion as of second-quarter 2021. - We understand that Akelius intends to reinvest the proceeds into new residential properties but the final usage of proceeds and the timing and details of the reinvestment strategy are uncertain. - Consequently, we revised our outlook on Akelius to negative from stable and affirmed our '###/A-2' long- and short-term issuer credit ratings on the company. - The negative outlook indicates that we could downgrade Akelius if it maintains a significantly smaller asset base without changing its existing capital structure or financial policy, resulting into an EBITDA interest coverage of 1.5x or below....
