Aaa rating is a recognition of the strength of the local government funding system
The credit rating agency Moody’s confirms in its recent reports the Aaa rating with stable outlook for Municipality Finance Plc (MuniFin) and the Municipal Guarantee Board (MGB).
The rating drivers for MuniFin are its importance as a lender to the Finnish regional and local government, which is implicated by its market share and ownership structure. MGB’s credit strengths are its joint guarantee by the Finnish municipalities and very predictable financial performance. MuniFin’s solid risk management improves the overall balance, the reports state. Moody’s also estimates that the current financial situation of the Finnish municipalities is still strong.
Moody’s Research confirming MGB’s Aaa rating was published on 20 November, 2014. MuniFin’s Aaa rating was confirmed in Moody’s Credit Opinion on 14 October, 2014.
MuniFin lends exclusively to its customers in the municipal sector and state-subsidised housing production. MGB in its part guarantees MuniFin’s debt. The both organisations’ credit ratings are linked to the rating agencies’ estimates on Finland’s public economy and especially on the strength of the municipality sector.
Further information:
President and CEO Pekka Averio, Municipality Finance Plc, tel. +358 500 406 856
CEO, Managing Director Heikki Niemeläinen, Municipal Guarantee Board, tel. +358 40 589 8348