The AAA rating with a Stable Outlook assigned to the Norwegian mortgage-covered bonds issued out of Verd Boligkreditt AS (Verd) is based on the bank’s private issuer rating enhanced by seven notches of cover pool support. Four notches thereof reflect our assessment of the strong fundamental credit support provided by the Norwegian legal covered bond and resolution frameworks.

The AAA rating of the covered bonds is vulnerable to a downgrade if the issuer’s credit quality deteriorates by one or more notches.

This monitoring note does not constitute a rating action nor does it indicate the likelihood of a credit rating action in the short term. On 24 March 2021, Scope affirmed the covered bonds at AAA/Stable. Click here for the corresponding press release.

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