Fitch Ratings has upgraded Norwegian community service Public Property Invest
ASA's (PPI) Long-Term Issuer Default Rating (IDR) and its senior unsecured
debt rating to 'BBB+' from 'BBB'. The Outlook is Stable.
The rating action follows PPI's announced plans to acquire a SEK37 billion
community service portfolio from Samhällsbyggnadsbolaget i Norden AB (SBB).
The large acquisition will widen PPI's geographical diversification to
pan-Nordic, complement its existing sector specialisation, and increase its
exposure to elderly care, LSS (disabled) housing and the share of
government-linked tenants in municipality-type buildings. The acquisition's
funding totals NOK13.8 billion of new equity issued to SBB, Aker ASA and PPI's
other shareholders.
The upgrade also reflects PPI's (pre-transaction) improvements in its
financial profile and access to capital through the issue of new unsecured
bonds, creating a largely unsecured balance sheet and extending the average
debt maturity to around five years. PPI has accessed equity as part of its
acquisition strategy.
Contacts
André Gaden, CEO, andre@publicproperty.no, Ilija Batljan, CIO,
ilija@publicproperty.no