The stock traded 6.2% lower at 0759 GMT, adding to a fall of 20% in the previous session and also dragging down shares of rival real estate companies.

S&P Global on Monday cut its long-term credit rating for SBB to "BB+" from "BBB-" and warned that a further downgrade deeper into junk territory was possible over the next six to twelve months if the company did not secure sufficient funding.

Hours later, SBB announced its decision to halt its dividend and said the market reaction to S&P's downgrade had made it impossible to go ahead with a planned 2.63 billion Swedish crowns ($259 million) share issue.

"SBB continues to work with previously announced disposals in order to continue to strengthen the company's financial position," it added in a statement.

Rising interest rates, soaring inflation and growing debt have hit real estate companies in Sweden, which the country's policy makers see as a risk to financial stability.

($1 = 10.1526 Swedish crowns)

(Reporting by Boleslaw Lasocki, editing by Terje Solsvik)