Research Update: Swedish Public Housing Provider Forvaltaren Outlook Revised To Negative; Ratings Affirmed At 'AA-/A-1+' And 'K-1'

In our view, Fastighets AB Förvaltaren's liquidity position has weakened due to reliance on short-term debt, although its strong market access should allow funding through the capital markets. Furthermore, we anticipate Förvaltaren's debt will keep increasing, owing to steady demand for housing amid strong population growth in Sundbyberg and environs. We are therefore revising our outlook on Förvaltaren to negative from stable, and affirming our 'AA-/A-1+' and 'K-1' ratings on the company. The negative outlook indicates that we could lower the ratings if Förvaltaren's debt burden increased structurally and significantly. On Oct. 27, 2017, S&P Global Ratings revised its outlook on Swedish public housing provider Fastighets AB Förvaltaren to negative from stable. At the same time, we affirmed our 'AA-/A-1+'

...In our view, Fastighets AB F÷rvaltaren's liquidity position has weakened due to + reliance on short-term debt, although its strong market access should allow funding through the capital markets. Furthermore, we anticipate F÷rvaltaren's debt will keep increasing, owing to + steady demand for housing amid strong population growth in Sundbyberg and environs. We are therefore revising our outlook on F÷rvaltaren to negative from stable, and + affirming our '##-/A-1+' and 'K-1' ratings on the company. The negative outlook indicates that we could lower the ratings if F÷rvaltaren's + debt burden increased structurally and significantly....

Research Update