SBB extends losses after delaying dividend, ditching rights issue

Wallenstam AB

09/05/2023 08:15

** Shares in SBB  SBBb.ST  fall around 4% 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 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 one of the worst performers on STOXX 600
 .STOXX  index
    ** Peers Castellum  CAST.ST , Wallenstam  WALLb.ST , Fabege
 FABG.ST  slide around 2-2.5%

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