Moody's believes that the companies' asset portfolios with a clear focus on offices in attractive locations will complement each other well and are likely to contribute to operational and financial synergies. Moody's considers the transaction to be credit positive for Kungsleden as the combined company will have an asset portfolio corresponding to SEK 157 billion and a strong financial position.
Moody's also believes that the combined company will have a solid financial profile and an ambition to maintain a Baa2 rating. The new Group's access to various sources of financing is also considered to improve after the merger, which may contribute positively to the possibility of expanding the share of unencumbered assets in the merged company.
“Kungsleden is, as we found in our half-yearly reporting, a well-managed and creditworthy real estate company with good earnings capacity and very bright prospects. The fact that Moody's now chooses to review Kungsleden's credit rating for a potential upgrade in connection with Castellum's takeover offer reinforces the view that a merger would create a financially even stronger company," says Charlotte Axelsson, Chairman of the Board of Directors at Kungsleden.