In our view, the small retail mortgage bank Suomen Hypoteekkiyhdistys (Hypo), has a weak business position, very strong capital and earnings, moderate risk position, below average funding, and adequate liquidity. We consider that Hypo has low systemic importance in Finland, and we consequently we do not factor any extraordinary government support into our ratings on the bank. We are assigning our 'BBB/A-3' long- and short-term ratings to Hypo. The outlook is negative, reflecting our view of the weak economic recovery in the export-oriented Finnish economy, which could adversely affect the Finnish banking sector's performance. On Aug. 31, 2015, Standard&Poor's Ratings Services assigned its 'BBB/A-3' long- and short-term counterparty credit ratings to Finnish retail mortgage bank The Mortgage Society
