Credit rating

Humlegården has a rating from S&P with a BBB+ grade, positive outlook, and a rating from Moody's with a Baa1 grade, stable outlook. Both credit ratings reflect the company's high-quality real estate portfolio of commercial properties in central Stockholm, strong financial metrics, and a business model that, under controlled conditions, focuses on major renovation and development projects.

Humlegården is a strong financial counterparty:

  • Strong owner connection to the Länsförsäkringar Alliance (A rating)
    • Humlegården is owned by 23 regional insurance companies and Länsförsäkringar Sak, which has a prudent risk-taking strategy that is part of long-term asset management for insurance companies. The assignment from the owners is to own, manage and develop its own properties in attractive office locations in the Stockholm region. Bank funding has an owner connection known as a Change of Control clause. It allows a lender to cancel the loan for repayment unless at least 90% of Humlegården is owned by companies in the Länsförsäkringar Alliance.
  • High-quality portfolio of commercial property in central Stockholm
  • Stable rental income and a low vacancy rate supported by strong financial growth and relatively small range of commercial premises
  • Relatively long terms in the contract portfolio
  • Financial strength from a loan-to-value ratio of 44%
  • Lower percentage of secured funding, at 36% at year-end (50)
  • No dividends