Fitch Ratings has placed Sveafastigheter’s ’BBB-’ Long-Term Issuer Default Rating and senior unsecured debt rating on Rating Watch Positive.
The action follows Sveafastigheter’s plans to merge with KlaraBo in an all-equity transaction.
Fitch may resolve the Rating Watch Positive with an upgrade to ‘BBB’ once the merger is completed and further progress has been made in extending Sveafastigheter’s average debt maturity to four years.
Fitch Ratings expects Sveafastigheter’s financial profile to remain robust following the merger, given the all-equity transaction and the higher share of income-producing properties. The resolution of the Rating Watch could take more than six months.