Municipality Finance Plc
Stock Exchange Release
9 October 2015 at 09:00 (CET +1)
Standard & Poor’s revised Municipality Finance Plc’s AA+ rating outlook to negative
Credit rating agency Standard & Poor’s has revised the outlook on Municipality Finance’s long-term credit rating to negative from stable on October 9, 2015.
The revision of the outlook on Municipality Finance’s credit rating is a consequence of the similar outlook revision on the Republic of Finland. Under Standard & Poor’s criteria, Municipality Finance cannot be rated above the sovereign.
Standard & Poor’s revised the sovereign’s AA+ rating’s outlook to negative from stable on September 25, 2015. According to the agency, the weakening of the sovereign’s rating outlook is a result of the risk that Finland’s economic growth will fail to pick up markedly despite the new government’s commitment to structural reforms.
In the same rating action and with the same rationale, Standard & Poor’s also changed its outlook on Municipal Guarantee Board’s AA+ rating similarly to negative from stable. Municipal Guarantee Board exclusively guarantees Municipality Finance’s funding.
MUNICIPALITY FINANCE PLC
Esa Kallio
Executive VP, Deputy to the CEO, Head of Capital Markets
Tel. +358 50 3377 953
Measured by the group’s balance sheet, MuniFin (Municipality Finance Plc) 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.