The downgrade is driven by Scope’s view of Ilija Batljan Invest’s announced intention to restructure its senior unsecured corporate bonds, which may be treated as a (Selective) Default under the agency’s rating definitions.

Scope upgraded Ilija Batljan Invest’s issuer rating to CC following the debt restructuring, based on improved liquidity and credit metrics.

Scope assigned Ilija Batljan Invest an issuer rating of SD and a senior unsecured bond rating of D, following a bond restructuring. Subsequently, the issuer and senior unsecured bond ratings were reinstated at C, placed under review for a possible upgrade

The downgrade is driven by Scope’s view on the announced intention of restructuring Ilija Batljan Invest’s senior unsecured corporate bonds.

Ilija Batljan Invest’s portfolio’s significantly reduced market values coupled with liquidity and governance concerns drive the downgrade, which concludes a period of the ratings being under review.

The under-review status is driven by the strategic review pursued by the issuer’s core holding, SBB. Uncertainties bound to the strategic review have also led to weaker recovery expectations, prompting Scope to downgrade all issue ratings.

Ilija Batljan Invest's dominant core holding SBB i Norden has proposed a postponement of dividends, increasing uncertainty for the company as total cost coverage temporarily falls below 1x.

Ilija Batljan Invest's deteriorated total cost coverage and increase in leverage, which Scope does not expect to recover in the short-to-medium term, drive the downgrade.

The affirmation is driven by IB Invest's continued high total cost coverage and the good liquidity of its assets. A volatile loan/value ratio and modest diversification hold the rating back.

The rating is based on the investment holding's BBB-/stable issuer rating and the deep subordination and the hybrid characteristics of the instrument.