Akademiska Hus US$500 Mil Euro-CP Rtd A-1+ by S&P.LONDON--(BUSINESS WIRE)--Standard & Poor's CreditWire 5/12/98-- Standard & Poor's today assigned its 'A-1'-plus short-term rating to the US$500 million Euro-commercial paper Euro-commercial paper Short-term notes with maturities up to 360 days that are issued by companies in international money markets. program (increased from US$300 million) of Statliga Akademiska Hus AB (Akademiska Hus). At the same time, Standard & Poor's also affirmed its double-'A' long-term issuer credit and senior unsecured ratings as well as its 'A-1'-plus short-term issuer credit and commercial paper ratings on Akademiska Hus. The ratings reflect the government ownership, the Swedish state's strong involvement in the higher education higher education Study beyond the level of secondary education. Institutions of higher education include not only colleges and universities but also professional schools in such fields as law, theology, medicine, business, music, and art. sector, Akademiska Hus' domination of the university premises market in Sweden, and the stable customer base. The company was formed in October 1993, and manages 2.8 billion square meters Noun 1. square meter - a centare is 1/100th of an are centare, square metre area unit, square measure - a system of units used to measure areas of university premises to a total book value of about Swedish krona Noun 1. Swedish krona - the basic unit of money in Sweden krona Swedish monetary unit - monetary unit in Sweden ore - a monetary subunit in Denmark and Norway and Sweden; 100 ore equal 1 krona (SKr) 17.2 billion (US$2.3 billion). The Swedish state is responsible for higher education in Sweden and directly owns more than 90% of all universities and university colleges. The majority of Akademiska Hus' buildings are teaching premises or laboratories and about 90% of the premises are located in campus areas, enhancing their strategic importance. The customers' special demands greatly limit their alternatives, fostering a close cooperative relationship between Akademiska Hus and the universities. Akademiska Hus generates stable cash flow and earnings, with pretax funds from operations Funds From Operations (FFO) Used by real estate and other investment trusts to define the cash flow from trust operations; earnings with depreciation and amortization added back. net interest coverage of 3.1 times (x) (2.7x in 1996) and pretax net interest coverage of 2.2x in 1997 (2.2x). Net operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. after interest and taxes was SKr556 million up from SKr420 in 1996, and the year-end 1997 net debt-to-total capital ratio was unchanged from 1996's 61%. While income and operating costs operating costs npl → gastos mpl operacionales should be fairly predictable, interest costs may fluctuate given the outstanding obligation's short-term interest fixing period. --CreditWire CONTACT: Anders Sars, Stockholm (46) 8-440-5919 Caroline Wingardh, Stockholm (46) 8-440-5927 For more information on criteria or subscriptions: http://www.ratings.standardpoor.com |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion