Free Trial

Heimstaden: Suspends Dividend

REAL ESTATE

Holdco impacted, Senior Unchanged

• To protect its IG rating (BBB-) HEIBOS suspends dividends, on which HEIMST (holdco) relies for income. HEIMST has deferred coupons on SEK hybrids in response, with Fitch downgrading the issuer rating from BB to B.

• HEIMST perps ~6 points lower, senior ~2-4pts lower

• HEIBOS senior bonds largely unchanged, with hybrids marginally lower. While the move to protect ratings is positive, the ongoing challenge is to improve ICR. Asset sales are important from here. The company continues to raise secured debt in front of bondholders. Spreads have rallied ~265bp since November 23.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.