Moody’s affirms Vasakronan’s rating of A3, stable outlook

Moody’s affirms Vasakronan’s rating of A3, stable outlook 

As before, the strong rating is based on the high quality of Vasakronan’s property portfolio, a high share of public sector tenants, healthy financial metrics and the strong links to the company’s owners, the First, Second, Third and Fourth Swedish National Pension Funds. Moody’s sees continued strong demand for offices and retail space in Vasakronan’s locations.

Vasakronan is Sweden’s largest property company and one of the largest issuers in the Swedish and Norwegian capital markets. The market value of the property portfolio totals around SEK 165 billion. The company’s financial objective is to have as diversified a financing structure as possible, both in terms of tenors and sources of funding. Since the rating was acquired in 2018, financing activities have broadened further toward new bond investors in Europe and Asia.

As of 31 March 2021, Vasakronan’s total liabilities amounted to SEK 73.2 billion with an average loan-to-maturity of 5.2 years. SEK 48.9 billion of the liabilities comprised unsecured bonds denominated in SEK, NOK, EUR, USD, AUD, HKD and JPY. Approximately 80% of these were green bonds.

Click here to access the full Vasakronan Credit Opinion from Moody’s.

Click here to access the press release in Swedish.