Landkreditt Boligkreditt AS’s covered bond ratings reflect a six-notch rating uplift from the A- issuer rating. The primary rating driver is cover pool support, reflecting the sound credit quality of the granular, fully residential cover pool with low loan/value (LTV). A high level of overcollateralisation also mitigates liquidity mismatch risks from slow scheduled amortisation of cover assets compared to a relatively fast redemption profile for the covered bonds.

The ratings further incorporate the agency’s positive assessment of fundamental credit support factors.

Provided that the covered bond programme’s risk structure does not change materially, the current covered bond ratings supported by the cover pool could remain unchanged up to a two-notch downgrade of the issuer – also supporting the Stable Outlook on the covered bonds.

On 02 April 2019, Scope affirmed the covered bonds at AAA/Stable. Click here for the corresponding press release.

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