Public Property Invest

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, [email protected], Ilija Batljan, CIO,

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