Comments to Standard & Poor's Rating of Vasakronan.Business Editors STOCKHOLM, Sweden--(BUSINESS WIRE)--Nov. 13, 2000 Vasakronan has chosen to secure a rating independent of the ownership link to the Swedish State. The rating is based entirely on Vasakronan's financial position. Vasakronan has received a credit rating of BBB BBB A medium grade assigned to a debt obligation by a rating agency to indicate an adequate ability to pay interest and repay principal. However, adverse developments are more likely to impair this ability than would be the case for bonds rated A and above. + from Standard & Poor's for long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. borrowing. Short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. borrowing received the highest domestic rating, K1. Standard & Poor's has now conducted a renewed assessment and Vasakronan retains its rating with the addition "negative outlook." The background is a review of all credit-rated European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. real estate companies. The appraisal is based on the strong improvement in the business climate in the real estate industry in recent years. The market trend in recent months has further accelerated. As a consequence, Standard & Poor's is urging caution in assessing the European real estate companies. Standard & Poor's assessment of the lowest limit for a cash-flow-based interest coverage ratio in most recent years has been a multiple of 2. This limit is now being increased to about 3. This means that a real estate company, in addition to having a solid equity ratio exceeding 35 percent, must also strive for a cash-flow-based interest coverage multiple of about 3. "We believe that the financial risk exposure within Vasakronan remains low," says Hakan Bryngelson, President of Vasakronan. "We consider it essential for Vasakronan to develop a market-leading position and to continue to pursue a growth strategy. This requires a high rate of investment." FINANCIAL FACTS The market value of Vasakronan's properties at December 31, 1999, was SEK SEK In currencies, this is the abbreviation for the Swedish Krona. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 27.2 billion. The surplus value in the property portfolio was SEK 8 billion and the adjusted equity/assets ratio was 47 percent. Concurrently, the visible equity ratio was 38 percent. As of September 30, 2000, Vasakronan had a visible equity/assets ratio of 36 percent and an interest coverage multiple of 2.3, which is fully in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with the company's financial strategy. ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. : http://www.bit.se/bitonline/2000/11/13/20001113BIT00450/bit0001.doc http://www.bit.se/bitonline/2000/11/13/20001113BIT00450/bit0002.pdf |
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