Heimstaden Bostad/AB - comment

Heimstaden Bostad has maintained its positive trajectory, reporting a like-for-like rental growth of 4.5%, which has contributed to a continued enhancement of the Net Operating Margin. Property valuations have remained stable, resulting in a reduction of the Loan-to-Value (LTV) ratio to 51% and an Interest Coverage Ratio (ICR) of 1.6x, as defined by S&P. In light of these developments, S&P has reaffirmed Heimstaden Bostad’s BBB– credit rating and revised the company’s outlook to stable from negative.