Kuntarahoitus Oyj - Company Announcement

S&P affirmed Municipality Finance the best “AAA” long-term rating - outlook however negative same as the sovereign’s

Municipality Finance Plc

Stock Exchange Release      January 23, 2012 at 11 am GMT

S&P affirmed Municipality Finance the best “AAA” long-term rating - outlook
however negative same as the sovereign's 

In relation to the decision by Standard & Poor's (S&P) in December 2011 to
place its ratings on the Republic of Finland and other 14 Euro zone sovereigns
on credit watch with negative implications, S&P also placed Municipality
Finance's long-term AAA-rating on credit watch with negative implications. The
reason for this was the close relationship between the Finnish state and the
Finnish municipal sector. According to S&P's rating methodology, Municipality
Finance's rating, the company being a public sector entity, cannot be higher
than the rating of the sovereign. 

On January 13, 2012 S&P affirmed Finland's “AAA” long-term and “A-1” short-term
sovereign credit ratings. The outlook on the long-term rating is negative.
Respectively, on January 20, 2012 S&P affirmed Municipality Finance the best
“AAA” long-term rating and - reflecting that on the sovereign - the outlook is
negative. Municipality Finance's short-term credit rating is “A-1”. 

“S&P's rating affirmation was anticipated, and it further improves Municipality
Finance's status in the international financial markets. After the recently
confirmed rating downgrades there remains only a small group of issuers with
the best possible “AAA” ratings, which clearly strengthens our ability to take
care of our clients' financing needs in all circumstances”, says Pekka Averio,
CEO of Municipality Finance. 

The full report of S&P is available under www.munifin.fi.

For more information:


President and CEO Pekka Averio, Municipality Finance Plc, tel. +358 9 6803
6211, +358 500 406856 

Deputy to the CEO Esa Kallio, tel. +358 9 6803 6231, +358 50 3377953

Attachments:

Munifin_credit rating_StockExchange 200112 FINAL.pdf