Municipality Finance Plc Stock exchange release 15 November 2013 at 16:30
Credit rating agency Moody’s has confirmed that the long-term credit rating of Municipality Finance remains Aaa (stable), the best possible. The short-term credit rating also remained at the best possible level at Prime-1.
The main pilars for the credit rating by Moody’s were Municipality Finance’s strong market position as the most significant provider of funding for its customers, the zero risk-weighted loan book, strong liquidity and prudent risk management. In the rating rationale, it was noted that Municipality Finance is a pillar of the Finnish local government sector that helps municipalities fulfill their legal obligations.
In addition, Moody’s also considered it positive that Municipality Finance has, in line with its strategy, started to prepare in time for the leverage ratio requirements that will enter into force in 2018, by improving its profitability with the aim of collecting the required funds through the results of its operations.
“The credit rating decision by Moody’s was in accordance with our expectations. We are pleased that our persistent work in developing the company and especially our risk management and related systems were highlighted in the reasoning behind the decision. Our mission is to ensure the availability of competitive funding for our customers under all market situations, which naturally requires us to make particularly careful provisions for changes in market situations, among other things,” says Pekka Averio, President and CEO of Municipality Finance.
Municipality Finance continues to be the only Finnish financial institution with the best possible credit rating from the two most significant credit rating agencies, Moody’s and Standard&Poor’s. Moody’s has kept the credit rating of Municipality Finance at Aaa since 2001. Furthermore, Municipality Finance is the only institution, in addition to the Republic of Finland, that has a AAA/Aaa credit rating with a stable outlook from two credit rating agencies.
Municipality Finance Plc
Further information:
Pekka Averio, President and CEO, tel. +358 500 406 856
Esa Kallio, Executive Vice President, Deputy to CEO, tel. +358 50 337 7953
Marjo Tomminen, Senior Vice President, CFO, tel. +358 50 386 1764
