SpareBank 1 commercial upped
Sep 26th, 2013
Moody’s upgraded commercial mortgage backed covered bonds issued by SpareBank 1 Næringskreditt from Aa3 to Aa2 yesterday (Wednesday), citing a strengthening of liquidity and capital support for the issuer.
The upgrade comes after the rating agency on 1 August described the strengthening of the issuer’s credit support mechanism as credit positive.
Announcing the upgrade, Moody’s said: “The enhanced support mechanism means that the alliance’s banks jointly-owning the issuer must now ensure that the issuer has sufficient funds to repay covered bonds and provide capital support up to twice each parent’s pro rata shareholding in the issuer.”
Arve Austestad, chief executive of SpareBank 1 Boligkreditt, told The Covered Bond Report in early August that the changes to the Næringskreditt support mechanisms bring them into line with those of SpareBank 1 Boligkreditt, which issues residential mortgage backed covered bonds, and would hopefully yield rating and pricing benefits.
