Heimstaden, a Swedish real estate group, announced on Tuesday that its subsidiary, Heimstaden Bostad, has experienced a downgrade in its credit rating by S&P. The rating has been lowered from BBB to BBB-, and a negative outlook has been assigned to it. 

The Swedish real estate sector is currently facing challenges with substantial debts, increasing interest rates, and a weakening overall economy.

BBB- is the lowest investment grade rating according to S&P, and the negative outlook indicates a potential for further downgrades in the future. Heimstaden emphasised in a statement its focus on maintaining an investment grade rating despite the challenging circumstances in the real estate sector.

(With Reuters Inputs)