Real estate firm Balder falls as Moody's continues review for possible downgrade

Fastighets AB Balder

30/01/2023 11:42

** Shares in Balder  BALDb.ST  fall 6% after Moody's says it
continues the review for downgrade of all ratings of the Swedish
real estate firm
    ** Moody's notes Balder "has undertaken several refinancing
and liability management transactions in Q4 2022", but says
current operating conditions will make it harder post-2023 to
keep increasing net rental income
    ** Carlsquare analyst Bertil Nilsson notes Balder has loans
of SEK 23 bln ($2.23 bln) maturing this year
    ** He says a credit rating downgrade at this point would
increase the uncertainty around the company's possibilities for
re-financing these loans
    ** A downgrade would also mean a bigger increase in interest
rate levels than otherwise expected, Nilsson adds
    ** Similarly to peers Castellum  CAST.ST  and SBB  SBBb.ST ,
Balder is under increased pressure from being financed to 60%
with bond loans, compared to the real estate sector average of
about 40%, Nilsson says
    ** Moody's expects to conclude its review in February 2023
and says "a downgrade, if any, will be limited to one notch"
($1 = 10.3095 Swedish crowns)
 (Reporting by Greta Rosen Fondahn)
 ((Greta.RosenFondahn@thomsonreuters.com))