Fitch affirmed the ratings of Norway’s Sparebanken on Tuesday, saying that their current ratings of A or A- reflect the sound asset quality and good capital and leverage ratios of the banks.

Norway’s Fana Sparebank obtained its first issuer rating on Wednesday, Baa2 from Moody’s, as its seeks to obtain a rating of covered bonds issued by its Boligkreditt subsidiary in a bid to improve domestic capital market access and funding costs, according to the bank’s CFO.

Moody’s changed its outlook on Norway’s banking system from negative to stable yesterday (Wednesday) as a result of improved and above euro-area growth forecasts, but also noted that Norwegian banks’ high reliance on wholesale funding could expose them to market volatility.

SpareBank 1 SMN today (Thursday) emerged with a senior unsecured transaction that it had been targeting since at least October, when it went on the first of two roadshows, while Stadshypotek priced the first Nordic sterling covered bond on Monday.

A Eu1bn 10 year Terra BoligKreditt covered bond launched yesterday (Wednesday) was only the second jumbo from the Norwegian issuer and its first euro benchmark in the long maturity, which the issuer’s CEO said it had been hoping to tap for some time.

DNB Boligkreditt launched a Eu1.5bn five year deal on Tuesday, but the issuer expects reduced issuance in euros this year as it has lower funding needs and is working towards a return to the dollar market.

Kristian Fiskerstrand, vice president, funding at Terra BoligKreditt, spoke with Nordic Financial Institutions & Covered about the issuer’s funding plans for 2013, a new name for the Terra alliance, and regulatory moves in Norway.

Florian Eichert, senior covered bond analyst, Crédit Agricole CIB, explores how Norwegian regulatory initiatives could affect Norwegian covered bonds and affect supply dynamics in 2013. 

Moody’s has deemed credit positive for covered bonds a Norwegian Ministry of Finance proposal for Norwegian covered bond issuers to be granted limited banking licences, saying that it would increase the likelihood of timely payment for bondholders.

Eivind Hegelstad, COO and head of investor relations at SpareBank 1 Boligkreditt, spoke to The Covered Bond Report’s Neil Day about the bank’s plans for 2013, its high profile in the US dollar market, and whether or not the Norwegian regulator is right on asset encumbrance.