Swedish Landlord SBB May Be Cut to Selective Default by S&P
Swedish landlord SBB may be cut to selective default by S&P Global Ratings, the agency said in a statement on Tuesday. The rating agency said it is reviewing the company’s creditworthiness and may downgrade its rating to selective default if it finds that SBB has failed to meet its financial obligations.
SBB is a real estate company that owns and manages a portfolio of residential and commercial properties in Sweden. The company has been struggling financially in recent years, and its credit rating has been downgraded several times.
SBB’s Financial Struggles
SBB has been facing financial difficulties since 2018, when it reported a loss of SEK 1.2 billion ($130 million). The company has since been unable to turn a profit, and its debt has grown to SEK 5.5 billion ($600 million).
The company has been trying to restructure its debt, but has been unable to reach an agreement with its creditors. In October, SBB announced that it had reached an agreement with its creditors to restructure its debt, but the agreement has yet to be finalized.
S&P’s Review of SBB’s Creditworthiness
S&P is now reviewing SBB’s creditworthiness and may downgrade its rating to selective default if it finds that the company has failed to meet its financial obligations. A selective default rating indicates that a company has failed to meet its financial obligations, but is still able to meet its other obligations.
S&P said it will review SBB’s financial situation and assess its ability to meet its financial obligations. The agency said it will also consider the company’s ability to restructure its debt and its prospects for future profitability.
Impact of a Downgrade
If S&P downgrades SBB’s rating to selective default, it could have a significant impact on the company’s ability to access capital. A lower rating could make it more difficult for SBB to borrow money, as lenders may be less willing to lend to a company with a lower credit rating.
It could also make it more difficult for SBB to refinance its debt, as lenders may be less willing to lend to a company with a lower credit rating. In addition, a lower rating could make it more difficult for SBB to attract investors, as investors may be less willing to invest in a company with a lower credit rating.
SBB’s Response
SBB has said that it is confident that it will be able to reach an agreement with its creditors and restructure its debt. The company has also said that it is confident that it will be able to turn a profit in the near future.
Outlook
It remains to be seen whether S&P will downgrade SBB’s rating to selective default. If it does, it could have a significant impact on the company’s ability to access capital and refinance its debt. It could also make it more difficult for SBB to attract investors.
However, SBB has said that it is confident that it will be able to reach an agreement with its creditors and restructure its debt. The company has also said that it is confident that it will be able to turn a profit in the near future.
Only time will tell whether SBB will be able to overcome its financial difficulties and return to profitability.