9.2.2011
Municipality Finance Plc has the best possible credit rating

Credit rating agencies Moody’s and Standard&Poor’s have, once again, confirmed the best possible credit rating, Aaa/AAA, for Municipality Finance Plc – as the only credit institution in Finland.

Municipality Finance gets 99 per cent of its financing from the international money market. The best credit rating has helped Municipality Finance to obtain financing at all times and at more beneficial terms than most banks and European countries.
 
In its December report, the credit rating agency Moody’s states the following:
“Thanks to its light organization and competitive pricing, Municipality Finance has been able to keep its strong market position in the municipality credit market. In addition, its current market share is supported by the withdrawal of most competitors from the market during the second half of 2008.”
 
Praise to the municipal sector from Moody’s
 
In addition, Moody’s tells in its report that Finland’s municipal sector is one of the strongest in Europe. The credit rating of Municipality Finance is also supported by the guarantee of the Municipal Guarantee Board. The Municipal Guarantee Board guarantees all Municipality Finance Plc’s commitments to investors.
 
S&P appreciates good risk management
 
Standard&Poor’s complements Municipality Finance’s sensible risk management. Its report from December states, among others, that Municipality Finance has never suffered from credit defaults and its investors have never had to turn to the Municipal Guarantee Board for help.
 
“Top-class credit ratings are vital in the current uncertain market situation. With them and with long-term investor work, Municipality Finance has been able to ensure sufficient financing for its customers even when they have not been able to get financing elsewhere”, says Pekka Averio, CEO of Municipality Finance.
 
When calculating the capital adequacy of banks and credit institutions in Finland, Municipality Finance Plc’s debt is classified as zero-risk.
 
Municipality Finance Plc is a credit institution owned by Finnish municipalities, the Local Government Pensions Institution and the Government, specialising in market-based funding to municipalities and municipal federations, to municipality-controlled entities and non-profit housing corporations.
The company’s mission is to ensure affordable financial services for its clients, to be efficient and to grow profitably.
The full reports of the agencies are available here.
 
For more information, please contact:
President and CEO Pekka Averio, Municipality Finance Plc, tel. +358 9 6803 6211, +358 500 406 856
Executive Vice President Esa Kallio, tel. +358 9 6803 6231, +358 50 337 7953