Norwegian covered bonds exposed to oil price-sensitive markets will be able to withstand the effects of persistent low prices thanks to sufficient levels of surplus OC, according to Moody’s, with the rating agency also noting that the relevant programmes should prove resilient to a consequent weakening of the Norwegian economy.
Finland came second to Germany in a ranking by Moody’s of eight covered bond jurisdictions according to how they deal with the consequences of an issuer default, with Norway and Sweden being placed mid-table.
Moody’s upgraded six Nordic issuers yesterday (Wednesday) – Danske, DNB, Handelsbanken, Nykredit Realkredit, SEB and Swedbank – citing strong macro profiles, healthy and strengthened core financial ratios and benefits of the introduction of bail-in regimes across the region.
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.
Gjensidige Bank has become more strategically important to its parent, Norwegian insurance group Gjensidige, according to Standard & Poor’s, which upgraded the bank, subsidiary Gjensidige Bank Boligkreditt, and the latter’s covered bonds on Friday.
Fitch put its AAA rating of Realkredit Danmark capital centre T issuance on Rating Watch Negative on Tuesday as it began implementing updated covered bond rating criteria, under which it has assigned Discontinuity Caps and outlooks to programmes from Denmark and Norway.
Danske Bank is cutting the number of ratings of its covered bonds to two to save resources, it said last Thursday (30 August), with Moody’s being dropped from a line-up that will henceforth consist of Fitch and Standard & Poor’s.
Nykredit found stronger than expected demand for three year bonds on the first day of the Danish auction season on Wednesday.
Moody’s raised the Timely Payment Indicators of seven Swedish covered bond programmes from “probable” to “probable-high”, its third highest TPI category, on Monday to reflect the relative strength of the Swedish covered bond market.