SBB deeper in red after delaying dividend, ditching rights issue

Wallenstam AB

09/05/2023 13:49

(Updates share move in first bullet, adds milestone in third
bullet)
    ** Shares in SBB  SBBb.ST  slump as much as 18% in record
volumes after the Swedish real estate company said late on
Monday it would delay its dividend payment and scrapped the
planned SEK 2.63 bln rights issue 
    ** On Monday SBB's shares fell 20% to 2018 lows after S&P
Global Ratings cut the firm's long-term credit rating to BB+
from BBB- with a negative outlook, citing "continuously high
leverage and tightening liquidity"
    ** SBB's stock was down 15% by 1235 GMT, shedding off about
$500 million from its market cap since Friday
    ** "SBB is now (almost) doing what the stock market wanted
(i.e., not paying any dividends to shareholders, at least not
this year). But it is also a question of confidence," Bertil
Nilsson at Carlsquare says
    ** Nilsson adds the delayed dividend gives the company SEK
2.5 billion in liquidity, which will be saved until spring 2024
    ** SBB's stock is the worst performers on STOXX 600  .STOXX 
index
    ** Peers Castellum  CAST.ST , Wallenstam  WALLb.ST , Fabege
 FABG.ST  fall between 4.5% and 5.5%

 (Reporting by Izabela Niemiec)
 ((izabela.niemiec@thomosnreuters.com))