The Mortgage Society of Finland

Very strong risk-adjusted capitalization. Strong asset quality and exceptional loan loss track record in the past decades. Very conservative lending and underwriting standards. Monoline business model as a pure residential mortgage financer. Concentration and cyclical risk due to focus on residential mortgage lending. Predominantly wholesale funding profile. The outlook on The Mortgage Society of Finland (Hypo) is stable and reflects our view that sound construction activity in Finland on the back of a benign economic environment will support Hypo to reach its growth ambitions without diluting its asset quality. It also reflects our view that material changes to the bank's capital management are unlikely over our outlook horizon. We could lower the ratings on Hypo in the next 18-24 months

...Outlook: Stable The outlook on The Mortgage Society of Finland (Hypo) is stable and reflects our view that sound construction activity in Finland on the back of a benign economic environment will support Hypo to reach its growth ambitions without diluting its asset quality. It also reflects our view that material changes to the bank's capital management are unlikely over our outlook horizon....

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