Municipality Finance Plc
Stock exchange release
December 2, 2015, 16:00 (CET +1)
Standard & Poor’s affirms Municipality Finance Plc’s AA+ credit rating
The credit rating agency Standard & Poor’s (S&P) affirmed its long-term credit rating on Municipality Finance Plc at AA+ (neg.) on December 2, 2015. The short-term credit rating of Municipality Finance Plc is still the best possible, A-1+.
According to Standard & Poor’s assessment, Municipality Finance’s strong ratings are based on the credit strength of the Finnish local government sector, together with the company’s strong risk management, very strong liquidity, excellent asset quality, and strengthening capital position.
Under Standard & Poor’s rating methodology Municipality Finance’s ratings are directly linked to those of the Republic of Finland and the company cannot have a rating higher than the sovereign.
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 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.