Transaction Update: The Mortgage Society of Finland (Mortgage Covered Bond Program)

The cover pool comprises mortgage loans with low loan-to-value (LTV) ratios (cover pool LTV ratio of about 31%), which is lower than other specialized mortgage lenders in the Nordics. The program benefits from a public commitment to maintain an overcollateralization level consistent with a 'AAA' rating. Interest rate risk arising from the predominantly variable interest paying assets and the fixed-rate paying covered bonds is mitigated through interest rate swaps. The cover pool's relatively low weighted-average seasoning compared with other Finnish covered bond issuers we rate. About 69% of the pool comprises housing associations, which we view as a higher risk to the program's creditworthiness than residential mortgages. S&P Global Ratings' stable outlook on its ratings on the mortgage covered bonds

...+ The cover pool comprises mortgage loans with low loan-to-value (LTV) ratios (cover pool LTV ratio of about 31%), which is lower than other specialized mortgage lenders in the Nordics. + The program benefits from a public commitment to maintain an overcollateralization level consistent with a '###' rating. + Interest rate risk arising from the predominantly variable interest paying assets and the fixed-rate paying covered bonds is mitigated through interest rate swaps....

Transaction Update Report