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

The cover pool comprises mortgage loans with low loan-to-value (LTV) ratios when compared to other specialized mortgage lenders in the Nordics. The program benefits from a public commitment to maintaining 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 partially mitigated through interest rate swaps. The concentration of mortgages in the South of Finland, which we have considered in our determination of default frequency. About 72% 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 issued by The Mortgage

...+ The cover pool comprises mortgage loans with low loan-to-value (LTV) ratios when compared to other specialized mortgage lenders in the Nordics. + The program benefits from a public commitment to maintaining 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 partially mitigated through interest rate swaps....

Transaction Update Report