The ratings on Sweden-based Sveriges Bostadsfinansieringsaktiebolag, SBAB (publ) (SBAB) reflect the low-risk nature of the company's business of mortgage banking; its sound financial profile; its ownership by the Swedish government; and the owner's commitment of support. SBAB existing bondholders also benefit from a government ownership clause, which states that they have the right to redeem their bonds if the government ceases to be the majority owner. The long-term rating is constrained below that of the sovereign, however, due to the commercial nature of SBAB's business, which makes the company a possible future candidate for privatization. With total assets of Swedish krona (Skr) 162.0 billion ($20.4 billion at Skr7.95 to $1) at Dec. 31, 2005, SBAB ranks as the fifth-largest mortgage...
Companies mentioned in this report are:
- SBAB Bank AB
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