Home HomeSwedenLivingWorld world_2_fill WorldBusiness BusinessSports sports-soccer SportsEntertainmentEntertain

Downgraded credit rating for SBB

» Updated: 16 July 2024, 14:14

» Published: 03 July 2024

Downgraded credit rating for SBB
Photo: Emma-Sofia Olsson/SvD/TT

The financially strained real estate company SBB has had its credit rating downgraded to SD (partially suspended payments) by the rating institute S&P Global. The stock fell on the Stockholm Stock Exchange following the news and closed at minus 4.0 percent on Wednesday.

S&P Global assesses that SBB will not be able to manage its debt mountain and will in practice suspend payments within six to twelve months.

After the stock exchange closed, SBB announced that the company is deferring interest payments on hybrid bonds.

"The measure is being taken to strengthen liquidity," the company writes in a press release, stating that the deferred interest will be paid in accordance with the bonds' terms.

A hybrid bond is subordinated to other debts and is considered a hybrid between borrowed and equity capital.

S&P Global writes in a comment on the downgraded credit rating that the institute views the terms offered by SBB to its lenders as equivalent to suspended payments "since the lenders will receive less than what they were originally promised".

Tags
TTT
By TTThis article has been altered and translated by Sweden Herald

More news

The Union Steps Up the Tesla Strike
1 MIN READ

The Union Steps Up the Tesla Strike

New French obstacles for Airbnb
1 MIN READ

New French obstacles for Airbnb

The Government Seeks Support for Those Affected by Northvolt
1 MIN READ

The Government Seeks Support for Those Affected by Northvolt

The regional tax will be raised next year
1 MIN READ

The regional tax will be raised next year

Astra Zeneca's China Chief Arrested by Police
1 MIN READ

Astra Zeneca's China Chief Arrested by Police

More rate cuts - but risk of turmoil with Trump
2 MIN READ

More rate cuts - but risk of turmoil with Trump

Svantesson: Trump's policy may increase inflation
2 MIN READ

Svantesson: Trump's policy may increase inflation

Major Banks Lower Mortgage Rates
1 MIN READ

Major Banks Lower Mortgage Rates

Central Bank Economist: Central Bank Cuts Interest Rate Too Late
2 MIN READ

Central Bank Economist: Central Bank Cuts Interest Rate Too Late

How You Are Affected by Lowered Interest Rates
2 MIN READ

How You Are Affected by Lowered Interest Rates

Thedéen expects turmoil after Trump's victory
2 MIN READ

Thedéen expects turmoil after Trump's victory

Inflation upswing does not threaten interest rate cuts
3 MIN READ

Inflation upswing does not threaten interest rate cuts

The Stockholm Stock Exchange Closed Up
1 MIN READ

The Stockholm Stock Exchange Closed Up

Most up on Asian stock exchanges
1 MIN READ

Most up on Asian stock exchanges

This is how your wallet can be affected by Trump's victory
2 MIN READ

This is how your wallet can be affected by Trump's victory

Cheerful on Wall Street after Trump win
1 MIN READ

Cheerful on Wall Street after Trump win

Thousand-kronor notes to be picked up when the Central Bank increases the pace
3 MIN READ

Thousand-kronor notes to be picked up when the Central Bank increases the pace

Swish up and running again after disruption
1 MIN READ

Swish up and running again after disruption

Trump's company is soaring on the stock exchange
1 MIN READ

Trump's company is soaring on the stock exchange

Swedish Export Threatened by Trump Victory
2 MIN READ

Swedish Export Threatened by Trump Victory