The AAA rating with a Stable Outlook assigned to the mortgage covered bonds (Katettu joukkolaina) issued by Danske Mortgage Bank Plc (Danske Kiinnitysluottopankki Oyj) are based on the bank's issuer rating (A+ / Stable), enhanced by governance-support based uplift. Governance support factors, in total, can provide a rating uplift of up to five notches and, effectively, a floor against a deterioration in cover pool credit quality. This reflects our assessment of the strong governance support provided by the legal covered bond and resolution framework in Finland and Denmark.

The cover pool provides additional cushion against a deterioration of the issuer. Provided that the covered bond programme’s risk structure does not change materially, the current mortgage covered bond ratings could remain unchanged up to a four-notch downgrade of the issuer.

This is not a rating action. On 4 July 2024, Scope assigned a first-time AAA rating for Danske Mortgage Bank PLC’s covered bonds. The outlook is Stable. Click here for the corresponding press release.

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