Moody’s upgraded the rating of covered bonds issued by Aktia Real Estate Mortgage Bank (REMB) from Aa2 to Aaa yesterday (Thursday), following the introduction of Counterparty Risk (CR) assessments to its methodology.
Moody’s upgraded Aktia Real Estate Mortgage Bank covered bonds from Aa3 to Aa2 on Tuesday after designating the covered bond anchor point the senior unsecured rating plus one notch.
Aktia has roadshowed its new Aktia Bank plc covered bond programme and Crédit Agricole CIB senior covered bond analyst Florian Eichert explores the differences between this and previous Aktia Real Estate Mortgage Bank covered bonds.
Timo Ruotsalainen, managing director, Aktia Real Estate Mortgage Bank, gave Nordic FIs & Covered an update about the Finnish group’s switch to issuing directly out of Aktia Bank, and discussed other developments.
Timo Ruotsalainen, Aktia Real Estate Mortgage Bank managing director, said that a Moody’s downgrade of the issuer’s covered bonds from Aa1 to Aa3 last Friday, which was less harsh than had been expected, was a pleasant surprise and that any decision on a potential liability management exercise was now less pressing.
The possibility of Aktia Bank launching a liability management exercise offering investors the option to switch into its covered bonds once it begins issuing directly next year has been raised by Aktia Real Estate Mortgage Bank, while some market participants have said that the Finnish group’s erstwhile partners could issue on their own.
Crédit Agricole CIB Senior Covered Bond Analyst Florian Eichert looks at the possible outcomes for Aktia Real Estate Mortgage Bank covered bondholders in light of the Finnish issuer’s plans to issue through Aktia Bank and a possible liability management exercise.
Aktia Bank will take over from Aktia Real Estate Mortgage Bank as the Finnish group’s covered bond issuer, a move fuelled by regulatory and rating criteria changes that favour more “streamlined” universal bank issuance, the specialist issuer announced last Wednesday (12 September).