Realkredit Danmark A/S ('RD') is a wholly owned subsidiary of Danske Bank A/S, to which Scope assigns a rating of A+, on review for possible upgrade. It acts as the Group’s specialised mortgage bank in Denmark. While it has its own governance structures, RD is closely integrated into the Danske Bank Group, of which it is considered a core subsidiary. Risk management is aligned with that of the parent.

In addition to its close integration within the parent, Scope considers that RD's stand-alone financial fundamentals are reassuring, with improving profitability, a low cost of risk and prudential capital ratios comfortably in excess of the minimum.

Scope also takes into account the well-tested funding model, while also noting the highly interconnected nature of the Danish banking sector, and thus the role of market confidence in achieving system stability. RD match-funds its loans with covered bonds, eliminating interest rate, currency and other market risks. Its exposure is therefore to the credit risk arising from the property assets it finances.

For the issuer rating report please click HERE.