FastPartner slumps as Moody's cuts credit rating to 'junk'

FastPartner AB

19/06/2023 08:54

** Shares in FastPartner  FPARa.ST  drop 8.4% after Moody's
on Friday cuts the Swedish real estate company's credit rating
to Ba1, a "junk status", from the investment grade Baa3
    ** The company says it has enough cash to handle debt
maturities for more than 30 months and that the reduced credit
rating has "marginal significance" for its daily operations
    ** FastPartner becomes the latest real estate company to
have its credit rating cut to "junk" among Sweden's property
slump woes, joining landlord giant SBB  SBBb.ST 
    ** The rating cut is bad for how the Swedish property sector
is perceived, says Carlsquare analyst Bertil Nilsson
    ** "More companies with downgraded credit ratings increase
the perception of Swedish real estate companies as highly
leveraged," Nilsson says, adding this hampers their ability to
obtain new loans
    ** Including Monday's fall, the FastPartner stock is down
nearly 43% YTD, trading at its lowest level since March 2017

 (Reporting by Agata Rybska)
 ((agata.rybska@thomsonreuters.com))