The affirmation follows a debt exchange into subsidiary SBB i Norden Holding and the subsequent withdrawal of legal proceedings brought by a sole hedge fund bondholder regarding an alleged breach of the interest coverage covenant in 2022.

Scope has obtained sufficient clarity on the implementation of SBB’s strategic review process to resolve the under-review status.

Scope downgrades SBB’s senior unsecured debt to CCC from B- due to reduced recovery expectations.

Weaker leverage and interest coverage, slow progress on the strategic review, liquidity and governance concerns and the dependence on asset sales to fund short-term debt obligations drive the downgrade.