Moodys.com
Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
LOG IN
Don't want to see this again?
REGISTER
OR
Accept our Terms of Use to continue to Moodys.com:

PLEASE READ AND SCROLL DOWN!

 

By clicking “I AGREE” [at the end of this document], you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s inform​ation that becomes accessible to you [after clicking “I AGREE”] (the “Information”).   References herein to “Moody’s” include Moody’s Corporation, Inc. and each of its subsidiaries and affiliates.

 

Terms of One-Time Website Use

 

1.            Unless you have entered into an express written contract with Moody’s to the contrary, you agree that you have no right to use the Information in a commercial or public setting and no right to copy it, save it, print it, sell it, or publish or distribute any portion of it in any form.               

 

2.            You acknowledge and agree that Moody’s credit ratings: (i) are current opinions of the future relative creditworthiness of securities and address no other risk; and (ii) are not statements of current or historical fact or recommendations to purchase, hold or sell particular securities.  Moody’s credit ratings and publications are not intended for retail investors, and it would be reckless and inappropriate for retail investors to use Moody’s credit ratings and publications when making an investment decision.  No warranty, express or implied, as the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any Moody’s credit rating is given or made by Moody’s in any form whatsoever.          

 

3.            To the extent permitted by law, Moody’s and its directors, officers, employees, representatives, licensors and suppliers disclaim liability for: (i) any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with use of the Information; and (ii) any direct or compensatory damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud or any other type of liability that by law cannot be excluded) on the part of Moody’s or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with use of the Information.

 

4.            You agree to read [and be bound by] the more detailed disclosures regarding Moody’s ratings and the limitations of Moody’s liability included in the Information.     

 

5.            You agree that any disputes relating to this agreement or your use of the Information, whether sounding in contract, tort, statute or otherwise, shall be governed by the laws of the State of New York and shall be subject to the exclusive jurisdiction of the courts of the State of New York located in the City and County of New York, Borough of Manhattan.​​​

I AGREE
Rating Action:

Moody's assigns A2 issuer rating to SpareBank 1 Boligkreditt AS; Negative Outlook

12 Feb 2019

Limassol, February 12, 2019 -- Moody's Investors Service, ("Moody's") has today assigned a first time A2 long-term issuer rating, long- and short-term Counterparty Risk Assessment (CRA) of A1(cr) and Prime-1(cr) respectively, as well as long- and short-term Counterparty Risk Ratings (CRR) of A1 and Prime-1 respectively to SpareBank 1 Boligkreditt AS, a specialized covered bond issuer owned by an Alliance of 14 Norwegian savings banks.

The assigned ratings reflect Moody's view of the weighted-average credit profile of the larger individual banks forming the SpareBank 1 Alliance as reflected in the ratings assigned, as well as the agency's assessment of the likelihood that these banks will support SpareBank 1 Boligkreditt in case of need. The assigned outlook on the issuer rating is negative, in line with the rating outlook of four of the largest owner banks reflecting potential downward rating pressure due to the domestic implementation of EU's Bank Recovery and Resolution Directive (BRRD) from 1 January 2019.

SpareBank 1 Boligkreditt's primary business purpose is to provide access to the international covered bond markets to the 14 Norwegian savings banks belonging to the SpareBank 1 Alliance, the second largest banking group in Norway with around 21.2% combined market share in residential mortgages as of June 2018. These banks have a collective legally-binding agreement to provide liquidity and capital support to SpareBank 1 Boligkreditt in case of need, the rating agency said. Although individual members operate independently from each other, Moody's takes into account in its assessment the various benefits that the SpareBank 1 Alliance provides such as a shared information technology infrastructure, marketing and common non-core banking products/services through affiliate companies, which act as incentives for member banks to remain members of the SpareBank 1 Alliance and support SpareBank 1 Boligkreditt.

A full list of affected ratings can be found at the end of this press release.

RATINGS RATIONALE

The key drivers for SpareBank 1 Boligkreditt's long-term issuer rating of A2 are: 1) the relatively strong credit profiles of the larger banks that form the Alliance, which is reflected in their assigned issuer ratings and the high quality assets they transfer to SpareBank 1 Boligkreditt; and 2) Moody's assessment of the probability that member banks would provide support to the covered bond entity, taking into account the balance of their obligations and incentives to do so under the SpareBank 1 structure.

- The anchor point for SpareBank 1 Boligkreditt reflects the larger owner banks' issuer ratings

SpareBank 1 Boligkreditt's A2 long-term issuer rating is mainly underpinned by the five largest member banks' issuer ratings (indicating a weighted-average issuer rating of A1), which collectively own 71.3% of SpareBank 1 Boligkreditt as of December 2018. Similarly, the CRA and CRR assigned to SpareBank 1 Boligkreditt, are also driven by the respective ratings assigned to the top five banks of the Alliance, which are as follows including their shareholding based on the assets they transferred to SpareBank 1 Boligkreditt:

-- SpareBank 1 Ostlandet (Issuer Rating of A1 negative, CRA of Aa3(cr)/P-1(cr), CRR of Aa3/P-1, shareholding of 21.6%)

-- SpareBank 1 SMN (Issuer Rating of A1 negative, CRA of Aa3(cr)/P-1(cr), CRR of Aa3/P-1, shareholding of 20.7%)

-- SpareBank 1 Nord-Norge (Issuer Rating of A1 negative, CRA of Aa3(cr)/P-1(cr), CRR of Aa3/P-1, shareholding of 17.8%)

-- SpareBank 1 BV (Issuer Rating of A2 stable, CRA of A1(cr)/P-1(cr), CRR of A1/P-1, shareholding of 6.4%)

-- SpareBank 1 SR-Bank ASA (Issuer Rating of A1 negative, CRA of Aa3(cr)/P-1(cr), CRR of Aa3/P-1, shareholding of 4.8%)

The credit profiles of the top five Alliance banks constitute the anchor point that drives the ratings assigned to SpareBank 1 Boligkreditt. These Alliance banks maintain relatively strong financial fundamentals, with limited variations in overall credit quality amongst individual members. While most of them focus on residential mortgages and commercial real-estate lending in a relatively small geographic area, which typically translate in high concentration levels, they also tend to feature similar strengths, such as strong overall asset quality metrics and robust capital buffers. Accordingly, all five banks have currently a baseline credit assessment (BCA) of baa1, reflecting their relatively solid financial position.

Moody's assessment of the member banks' credit risk profiles also incorporates an analysis of individual banks' liability waterfalls in line with the rating agency's Loss Given Failure (LGF) analysis. The results of the banks' respective LGF analysis are similar, indicating two notches uplift for banks' issuer ratings from their BCA, driven by the relatively high volume of senior debt and deposits that could absorb losses in a potential resolution scenario.

Moody's also notes that four of the larger banks' credit profiles, with the exception of SpareBank 1 BV, also benefit from one notch of rating uplift due to government support, reflecting the agency's assumption of a moderate likelihood of support from the government in case of need. However, the implementation of the BRRD resolution framework in Norway from 1 January 2019 will likely induce Moody's to revise downwards its government support assumptions for these banks, as indicated by the negative outlook attached to their issuer ratings.

- Moody's view of the likelihood owner banks will support SpareBank 1 Boligkreditt in case of need

The ratings assigned to SpareBank 1 Boligkreditt incorporate Moody's view of the likelihood that the owner banks will support SpareBank 1 Boligkreditt and its creditors, which translates into a long-term Issuer rating of A2 and a long-term CRA of A1(cr) and CRR of A1. While there is no explicit commitment/guarantee from the banks to directly support SpareBank 1 Boligkreditt's obligations vis-à-vis its bondholders, the agency notes that legal and publicly-available agreements currently in place between the Alliance banks and SpareBank 1 Boligkreditt safeguard its own access to adequate liquidity and capital.

Specifically, the owner banks have agreed to maintain SpareBank 1 Boligkreditt's common equity Tier 1 (CET1) capital ratio (13.1% as of December 2018) above its regulatory requirement (currently at 12.8%), and to subscribe to any new covered bond issues in case there is a disruption in the covered bond market. Moreover, in case one or more of owner banks are not able to provide their share of capital or liquidity, the remaining banks may be required by SpareBank 1 Boligkreditt to increase their contribution up to a maximum of twice their initial allocation.

Additionally, the agency's view also reflects other factors that contribute in its assessment such as the absence of any provision to avoid payment under the agreement, SpareBank 1 Boligkreditt's strategic fit and strong operational integration with the Alliance banks, as well as the reputational and operational risks associated to the sharing of a common brand and a common technology platform.

OUTLOOK

The negative outlook assigned to SpareBank 1 Boligkreditt's issuer rating is in line with the negative outlook of four of the larger banks' issuer ratings, and reflects Moody's expectation that it will revise downwards its government support assumptions for these banks, which will likely exert negative rating pressure to both the owner banks and SpareBank 1 Boligkreditt.

WHAT WOULD MOVE THE RATINGS UP/DOWN

Positive pressure would develop on the ratings following improvements in the risk profile of a significant proportion of the owner banks, as evidenced by improving asset quality and profitability metrics and reduced concentration levels. A full guarantee of SpareBank 1 Boligkreditt's obligations by the owner banks would also result in an upgrade.

The ratings would be downgraded if the credit profile of a significant portion of the banks weakens significantly, as evidenced by worsening financial fundamentals or a reduced likelihood of the banks supporting SpareBank 1 Boligkreditt, as indicated by a loosening in the support agreements between SpareBank 1 Boligkreditt and the banks that are currently in place. SpareBank 1 Boligkreditt's ratings will also be downgraded in case the owner banks' ratings are downgraded due to the revision of our government support assumptions.

LIST OF AFFECTED RATINGS

Issuer: SpareBank 1 Boligkreditt AS

Assignments:

....LT Issuer Rating, Assigned A2, Outlook assigned Negative

....LT Counterparty Risk Assessment, Assigned A1(cr)

....ST Counterparty Risk Assessment, Assigned P-1(cr)

....LT Counterparty Risk Ratings, Assigned A1

....ST Counterparty Risk Ratings, Assigned P-1

Outlook

...Outlook assigned Negative

SpareBank 1 Boligkreditt AS is based in Stavanger, Norway and had total assets of NOK245.5 billion as of December 2018 (€24.6 billion).

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Banks published in August 2018. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.

REGULATORY DISCLOSURES

For ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this credit rating action, and whose ratings may change as a result of this credit rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.

Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.

Nondas Nicolaides
VP - Senior Credit Officer
Financial Institutions Group
Moody's Investors Service Cyprus Ltd.
Porto Bello Building
1, Siafi Street, 3042 Limassol
PO Box 53205
Limassol CY 3301
Cyprus
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

Sean Marion
MD - Financial Institutions
Financial Institutions Group
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

Releasing Office:
Moody's Investors Service Cyprus Ltd.
Porto Bello Building
1, Siafi Street, 3042 Limassol
PO Box 53205
Limassol CY 3301
Cyprus
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

No Related Data.
© 2020 Moody's Corporation, Moody's Investors Service, Inc., Moody's Analytics, Inc. and/or their licensors and affiliates (collectively, "MOODY'S"). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND/OR ITS CREDIT RATINGS AFFILIATES ARE MOODY'S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MATERIALS, PRODUCTS, SERVICES AND INFORMATION PUBLISHED BY MOODY'S (COLLECTIVELY, "PUBLICATIONS") MAY INCLUDE SUCH  CURRENT OPINIONS. MOODY'S INVESTORS SERVICE DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE MOODY'S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY'S INVESTORS SERVICE CREDIT RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS, NON-CREDIT ASSESSMENTS ("ASSESSMENTS"), AND  OTHER OPINIONS INCLUDED IN MOODY'S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY'S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY'S ANALYTICS, INC. AND/OR ITS AFFILIATES. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND  PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND  PUBLICATIONS DO NOT COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY'S ISSUES ITS CREDIT RATINGS, ASSESSMENTS AND OTHER OPINIONS AND PUBLISHES  ITS PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR  PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.

ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT.

MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.

All information contained herein is obtained by MOODY'S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided "AS IS" without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY'S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing its Publications.

To the extent permitted by law, MOODY'S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY'S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY'S.

To the extent permitted by law, MOODY'S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY'S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING, ASSESSMENT, OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY'S IN ANY FORM OR MANNER WHATSOEVER.

Moody's Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody's Corporation ("MCO"), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody's Investors Service, Inc. have, prior to assignment of any credit rating, agreed to pay to Moody's Investors Service, Inc. for credit ratings opinions and services rendered by it fees ranging from $1,000 to approximately $2,700,000. MCO and Moody's investors Service also maintain policies and procedures to address the independence of Moody's Investors Service credit ratings and credit rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold credit ratings from Moody's Investors Service and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading "Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy."

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY'S affiliate, Moody's Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody's Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to "wholesale clients" within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY'S that you are, or are accessing the document as a representative of, a "wholesale client" and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to "retail clients" within the meaning of section 761G of the Corporations Act 2001. MOODY'S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.

Additional terms for Japan only: Moody's Japan K.K. ("MJKK") is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody's Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody's SF Japan K.K. ("MSFJ") is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization ("NRSRO"). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any credit rating, agreed to pay to MJKK or MSFJ (as applicable) for credit ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY250,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.

​​​​​​​​
Moodys.com