Landlord Heimstaden Faces One-in-Three Chance of Cut to Junk

Heimstaden Bostad AB, one of the biggest residential landlords in Europe, has a one-in-three chance of seeing its credit rating downgraded to junk by Standard & Poor’s, a move that would exacerbate its already stretched financing situation.

The privately-owned property group was cut one notch to BBB- with a negative outlook, S&P said in a statement. The rating company cited “significant” refinancing needs totaling about 30 billion Swedish kronor ($2.9 billion) between the fourth quarter of next year and third quarter of 2025. There were also concerns about the level of earnings in relation to the interest due on its debt.