Södra has received a credit rating of BBB from credit rating agency Nordic Credit Rating (NCR). The rating is a confirmation of financial stability and promotes long-term value generation for Södra’s 53,000 members.
The aim of Södra’s Group strategy is to create profitable and sustainable growth in an ever-changing world. Long-term financial stability is key to achieving this goal. The credit rating agency Nordic Credit Rating (NCR) has now assigned Södra an official credit rating of BBB, the equivalent of ‘investment grade rating.’ The rating is confirmation of Södra’s long-term financial stability and creates opportunities for improved financing terms.
“An official credit rating is positive for Södra and our 53,000 members. It adds momentum to our efforts to obtain improved external financing solutions, which promotes both our work and value generation for our members. It also provides more opportunities for us to develop the operations in challenging times,” said Peter Karlsson, CFO for Södra.
According to NCR, a credit rating of BBB reflects Södra’s long-term financial position and flexibility. Södra has been active in the Swedish capital market since 2016 under an MTN programme with a bond framework corresponding to SEK 4 billion.
“The credit rating strengthens Södra as a financial counterparty and the rating is in line with our expectations. This will further sharpen our financial strength, robustness and flexibility,” said Magnus Reitersjö, Head of Treasury and responsible for Södra’s financing.
The credit rating is immediately effective.
Founded in 1938, Södra is Sweden’s largest forest-owner association, with 53,000 forest owners as its members. We conduct modern and responsible forestry, and operate state-of-the-art mills in which we process our raw material. In 2020, net sales amounted to SEK 20 billion and employees totalled 3,100. Through value-generating relationships and a long-term approach, Södra shows the way for the next generation of forestry.