Heimstaden - comment

S&P have initiated ratings on Heimstaden AB (the holding entity) with a B-.  This is higher than we expected, with S&P highlighting the uncertain cash flow at AB post the suspension of dividends, resulting in interest coverage well below 1.0x for 2024 and 2025.  The B- rating is anchored due to the high recovery expected in any liquidation scenario.  S&P’s recovery analysis on Heimstaden AB is close to 145%, which is lower than our analysis but still a par recovery.