Svenska Handelsfastigheter Credit Rating Upgraded to BBB by Nordic Credit

Nordic Credit Rating (NCR) has upgraded LSTH Svenska Handelsfastigheter AB's long-term credit rating to BBB from BBB-, with a stable outlook, according to Dagens industri. The company's short-term credit rating was also raised to N3, reflecting its improved liquidity profile. The upgrade is primarily attributed to Svenska Handelsfastigheter's strengthened financial risk management, demonstrated owner support, and an updated financial policy ensuring a minimum of twelve months of liquidity coverage. A SEK 380 million shareholder loan in the second quarter of 2025 underscored the owners' commitment. Furthermore, the company extended its average interest-rate fixation period to 2.4 years, mitigating sensitivity to market interest rate volatility. An interest coverage ratio exceeding 3.0x is expected to remain stable due to reduced financing costs and consistent net operating income. Operationally, Svenska Handelsfastigheter has maintained a stable occupancy rate through proactive management, adjusted rent levels, and close collaboration with its partners, despite a cautious consumer environment. NCR highlighted the company's focus on cash flow and established long-term tenant relationships as key strengths. Thomas Holm, CEO of Svenska Handelsfastigheter, stated that the upgrade acknowledges the company's financial strength and long-term business model. He added that it reinforces their commitment to being a reliable partner for both retailers and bond investors, emphasizing the company's strong market position in the discount and grocery retail sectors.