Fastpartner can service debt for 30 months after Moody's cut to junk

FastPartner AB

19/06/2023 07:26

STOCKHOLM, June 19 (Reuters) - Sweden's Fastpartner
 FPARa.ST  has enough cash to handle debt maturities for more
than 30 months, it said after Moody's cut the credit rating for
the real estate group to "junk status". 
    High debt, rising interest rates and a wilting economy has
produced a toxic cocktail for Sweden's commercial property
companies, with some cut to junk by rating agencies. Landlord
giant SBB  SBBb.ST  is at the centre of the spiral. 
    Concerns about the sector are weighing on the currency,
while investors are wondering if Sweden is the first domino to
fall in Europe. 
   Moody's late on Friday said it would lower the rating for
Fastpartner, which owns mainly commercial property, to Ba1 from
the investment grade Baa3.
   Fastpartner said in a separate statement it had recently
strengthened its financial stability by extending the terms of
existing bank loans and rapid credit facility agreements. 
    "The implication of these measures is that we have liquidity
to handle all debt maturities for a period exceeding 30 months,"
CEO and majority-owner Sven-Olof Johansson said. 
    "In light of this and the company's relatively low share of
outstanding bond loans, the lowered credit rating has marginal
significance for the company's day-to-day operations," he said. 
    Sweden and Germany are among the worst affected by a
widening property slump on the continent, according to Eurostat.


    

 (Reporting by Anna Ringstrom, Editing by Louise Heavens)
 ((anna.ringstrom@thomsonreuters.com; +46 8 502 423 74; Reuters
Messaging: anna.ringstrom.thomsonreuters.com@reuters.net))