S&P attributed the one-notch downgrade to forecasted declines in their interest coverage ratio (ICR) as they stated that "forecasts won't maintain EBITDA interest coverage of above 1.8x over the next 12-24 months".
Despite the downgrade, S&P states in their upside scenario that the outlook would be resolved if the "ICR remains close to 1.8x, Debt / Debt Plus Equity remains at or below 60%, and refinancing conditions are favourable, or equity is injected by shareholders".
"We are determined to restore our 'BBB' rating. Our robust base case, recognised by S&P, is supported by eight consecutive quarters of improved NOI. By continuing to handle our debt maturities well in advance and maintain a strong liquidity position, being supported by privatisation sales surpassing expectations, we are confident that we will return to a stable outlook. There should be no doubt that
"We are fully committed to sustaining an investment grade rating. The unanimous dedication of our Board ensures a return to compliance with our financial policy, with the goal of reclaiming the 'BBB' rating", says Board Chairperson Helge Leiro Baastad.
Contacts:
+47 90 72 49 99, christian.dreyer@heimstaden.com
Malin Lethenström, Head of IR
+44 77 48 05 58 21, ir@heimstaden.com
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