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. Less stable deposit base compared with peers. The negative outlook on The Mortgage Society of Finland (Hypo) reflects our view that the weakening Finnish economy, induced by the COVID-19 pandemic, could weaken the bank's growth and profitability targets over the next two years. A prolonged recovery in Finland's export-oriented economy could adversely affect the Finnish banking sector's performance. This could lead us to revise down our anchor for Finnish banks, including Hypo, to 'bbb+', from 'a-', which in
