The downgrade reflects S&P's assessment of SBB's recent actions, including a missed payment on its debt obligations, which led to the company entering into a state of selective default. SBB has been navigating challenges in its financial structure, compounded by broader economic pressures and market conditions.

Selective default is a credit rating indicating that a borrower has defaulted on specific obligations but continues to meet others. S&P's action underscores the severity of SBB's financial situation and the potential implications for its stakeholders and creditors.

SBB, known for its extensive real estate portfolio across Sweden and other Nordic countries, continues to engage with creditors to address its financial obligations and restore stability. The company's operations and strategic initiatives remain under scrutiny as it works towards resolving its financial challenges.

The downgrade by S&P highlights the evolving landscape of financial risk in the real estate sector, particularly amidst economic uncertainties and liquidity pressures. Stakeholders and investors are closely monitoring developments surrounding SBB's financial restructuring efforts and the potential impact on its market standing and operational capabilities.