Fitch Upgrades Public Property Invest to BBB+ /Stable on Acquisition of SBB Assets

Fitch Ratings has upgraded Norwegian community service Public Property Invest ASA's (PPI) Long-Term Issuer Default Rating (IDR) and its senior unsecured debt rating to 'BBB+' from 'BBB'. The Outlook is Stable.

The rating action follows PPI's announced plans to acquire a SEK37 billion community service portfolio from Samhällsbyggnadsbolaget i Norden AB (SBB). The large acquisition will widen PPI's geographical diversification to pan-Nordic, complement its existing sector specialisation, and increase its exposure to elderly care, LSS (disabled) housing and the share of government-linked tenants in municipality-type buildings. The acquisition's funding totals NOK13.8 billion of new equity issued to SBB, Aker ASA and PPI's other shareholders.

The upgrade also reflects PPI's (pre-transaction) improvements in its financial profile and access to capital through the issue of new unsecured bonds, creating a largely unsecured balance sheet and extending the average debt maturity to around five years. PPI has accessed equity as part of its acquisition strategy.

Contacts André Gaden, CEO, andre@publicproperty.no, Ilija Batljan, CIO, ilija@publicproperty.no