Transaction Update: The Mortgage Society Of Finland CBA Covered Bond Program

The cover pool comprises well-seasoned Finnish mortgage loans with lower current loan-to-value (LTV) ratios than other specialized mortgage lenders in the Nordics. The bonds' soft-bullet repayment profile mitigates short-term liquidity risk. The structure benefits from a public commitment by the issuer to maintain overcollateralization consistent with a 'AAA' rating. Concentration of mortgages in the South of Finland, which we have considered to determine default frequency. About 90% of the pool comprises loans to housing companies, which we view as a higher risk to the program's creditworthiness than residential mortgages. S&P Global Ratings' stable outlook on the 'AAA' ratings on the Mortgage Society of Finland's ("Suomen Hypoteekkiyhdistys"; Hypo) CBA mortgage covered bond program and related covered bond issuances reflects one unused

...+ The cover pool comprises well-seasoned Finnish mortgage loans with lower current loan-to-value (LTV) ratios than other specialized mortgage lenders in the Nordics. + The bonds' soft-bullet repayment profile mitigates short-term liquidity risk. + The structure benefits from a public commitment by the issuer to maintain overcollateralization consistent with a '###' rating....

Transaction Update Report