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Investing.com -- Moody’s Ratings has upgraded Fastpartner AB’s corporate family rating to Ba2 from Ba3, citing the Swedish real estate company’s robust operating performance despite rising vacancies. The outlook was changed to stable from positive.
The upgrade reflects Fastpartner’s credit metrics aligning with Ba2 requirements and expectations of further improvements, according to Maria Gillholm, Moody’s Vice President and lead analyst for Fastpartner.
Despite a slight 0.6% decline in rental income within the comparable portfolio due to increased vacancies, Fastpartner’s operational performance remained relatively stable. The company’s overall vacancy rate stands at 8.3%, performing slightly better than industry peers.
Falling interest rates have strengthened the company’s interest coverage to 2.1x for the last twelve months through Q3 2025, up from 1.8x at the end of 2024. Moody’s expects this ratio to improve further to 2.3-2.4x over the next 12-18 months.
The rating agency noted that Fastpartner benefited quickly from interest rate cuts due to its historically low hedging, with only a three-month lag. The company has increased its hedging, with a commitment to gradually raise levels well above 30%.
Moody’s also considered potential support through a cash injection from Compactor Fastigheter AB if required. The company maintains covenant buffers on certain bank loans at 2.1-2.3x, with covenant ratios expected to reach 2.6-2.7x.
The Ba2 rating reflects positively on Fastpartner’s medium-sized property portfolio, which focuses on office buildings in attractive inner-city areas, fringe central business district locations, and desirable secondary locations in the Greater Stockholm area. The portfolio includes well-located logistics properties, representing 17% of rental value.
These strengths are partially offset by geographical concentration, even though it is in Sweden’s strongest growth areas, and the relatively high vacancy rate of 8.3% as of September 2025. Nearly 90% of Fastpartner’s rents are CPI-linked, with an indexation of 3% for 2025, supporting rental growth.
The stable outlook reflects potential for further upward rating pressure over the next few quarters, assuming continued improvement in credit metrics. Moody’s expects Fastpartner to proactively refinance upcoming debt maturities and increase hedging towards 30%.
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