... Stable The outlook on The Mortgage Society of Finland (Hypo, or the bank) is stable. We believe that the improving economic environment and the sound growth in construction activity in Finland are aiding Hypo to reach its targeted loan growth over the next two years. We expect the bank to remain committed to high asset quality in loan origination and to elevated capitalization underpinned by its status as a mutual company. We could lower the ratings if Hypo unexpectedly changed its current conservative lending policies, leading to weakening of its asset quality and ensuing credit losses. We could also take a negative rating action if Hypo increased its business growth more aggressively than we assume and failed to maintain its very strong capital and earnings in line with our expectations. A positive rating action is, in our view, remote at this stage. It could be triggered by an improved funding profile demonstrated by more diversified...
