Heimstaden AB - comment

Heimstaden AB, the parent Company of Heimstaden Bostad, has suspended coupon on its Hybrid bonds. With no expectation of dividends from Heimstaden Bostad in the short-term it will take more than suspending coupons on the hybrids to improve liquidity at the parent entity.  Theoretically, Heimstaden AB has asset coverage, but with SEK bond maturing in 2025, the business requires liquidity.  

S&P has downgraded Heimstaden AB perpetual notes to D following the announcement of the deferral of coupon.