Municipality Finance Plc
Stock exchange release
13 December 2016, 15:30 EET
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 to be maintained at AA+ on December 13, 2016. The outlook of the rating is stable. The short-term credit rating of is still the best possible, A-1+.
Standard & Poor’s assesses that Municipality Finance’s capital has strengthened considerably. The credit rating agency states that Municipality Finance’s strong ratings are based on the credit strength of the Finnish local government sector. Standard & Poor’s assesses Municipality Finance’s business and financial risk profiles as strong. This is based on their estimate on Municipality Finance’s business position, management and governance, combined with an assessment of the company’s funding, liquidity and capital adequacy.
Simultaneously with affirming Municipality Finance’s rating, Standard & Poor’s has also affirmed maintaining its AA+ credit rating on the Municipal Guarantee Board. The Municipal Guarantee Board exclusively guarantees Municipality Finance’s funding.
Under Standard & Poor’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 AA+.
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.