Moody's downgrades Municipality Finance Plc's credit rating to Aa1; Outlook stable
Municipality Finance Plc
Stock Exchange Release
8 June 2016 at 13:30 (EET)
Moody's downgrades Municipality Finance Plc's credit rating to Aa1; Outlook stable
Credit rating agency Moody's downgraded the long-term credit rating on Municipality Finance from Aaa to Aa1 on June 8, 2016. The outlook on the rating is stable.
Moody's rating for Municipality Finance's short-term credit rating remains unchanged the best possible, Prime-1. Also the rating of Municipality Finance's EUR 350,000,000 Perpetual Fixed Rate Resettable Additional Tier 1 (AT1) Securities was affirmed unchanged at A3.
The change on Municipality Finance's long-term issuer rating is only a consequence of the similar downgrade on the Republic of Finland.
On June 8, 2016 Moody's also lowered the credit rating of Municipal Guarantee Board (MGB) to Aa1. As with Municipality Finance's rating, Moody's rating action on Municipal Guarantee Board followed the changed rating on the sovereign of Finland. MGB explicitly guarantees Municipality Finance's funding.
MUNICIPALITY FINANCE PLC
Esa Kallio
Executive VP, Deputy to the CEO, Head of Capital Markets
Tel. +358 50 3377 953
Measured by the group's balance sheet, MuniFin (Municipality Finance Plc) is Finland's third largest credit institution. The company is owned by Finnish municipalities, the public sector pension fund Keva and the Republic of Finland. MuniFin is an integral part of the Finnish public economy.
MuniFin's balance sheet totals nearly EUR 34 billion. Funding for the company is primarily obtained through the international capital markets. MuniFin's funding is guaranteed by the Municipal Guarantee Board.
MuniFin's mission is to ensure competitive funding for its customers in all market conditions. The company's customers are Finnish municipalities, municipal federations, municipally controlled companies and non-profit housing corporations. A significant portion of lending is used for socially responsible projects such as building hospitals, healthcare centers, schools, day care centers and homes for the elderly.
The Municipality Finance Group also includes the subsidiary company, Financial Advisory Services Inspira Ltd.
Read more: www.munifin.fi
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Kuntarahoitus Oyj via GlobeNewswire
