Municipality Finance Plc
Stock exchange release
22 December 2016, 08:00 EET
Moody’s affirms Municipality Finance Plc’s Aa1 credit rating
The credit rating agency Moody’s affirmed its long-term credit rating on Municipality Finance Plc to be maintained at Aa1 on December 21, 2016 with stable outlook. The short-term credit rating of is still the best possible, Prime-1.
Moody’s assesses that Municipality Finance’s strong credit ratings are based on its ownership and high market share in the Finnish regional and local government sector and in the central government subsidized housing finance. Moody’s estimates that among the company’s credit strengths are its good asset quality and the predictability of its financial performance. Moody’s states that its credit rating is also based on Municipality Finance’s diverse funding, good liquidity, strong capitalisation and its low risk appetite.
Under Moody’s rating methodology Municipality Finance’s ratings reflect those of the Republic of Finland. The long-term credit rating on the Republic of Finland is also Aa1.
MUNICIPALITY FINANCE PLC
Further information:
Pekka Averio
President and CEO
tel. +358 500 406 856
Esa Kallio
Executive VP, Deputy to the CEO, Head of Capital Markets
Tel. +358 50 3377 953
Measured by the group’s balance sheet, Municipality Finance Plc (MuniFin) 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 36 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.