Heimstaden Bostad - comment

What crisis? Heimstaden Bostad issued a €500m 5-yr unsecured bond at 3.875%. Heimstaden Bostad remains a BBB- with a negative outlook at S&P and Fitch due to high LTV and falling ICR ratio.  Although the privatisation program is ahead of schedule, the ratings will remain under pressure without a larger asset disposal.  Issuing at 3.875% will help the ICR ratio over time, and we have to reluctantly admit this is significantly tighter than we had modelled.