Kuntarahoitus Oyj - Company Announcement

Moody’s has confirmed the best possible credit rating for Municipality Finance

Municipality Finance Plc          Stock exchange release    15 November 2013 at
16:30 

Credit rating agency Moody's has confirmed that the long-term credit rating of
Municipality Finance remains Aaa (stable), the best possible. The short-term
credit rating also remained at the best possible level at Prime-1. 



The main pilars for the credit rating by Moody's were Municipality Finance's
strong market position as the most significant provider of funding for its
customers, the zero risk-weighted loan book, strong liquidity and prudent risk
management. In the rating rationale, it was noted that Municipality Finance is
a pillar of the Finnish local government sector that helps municipalities
fulfill their legal obligations. 



In addition, Moody's also considered it positive that Municipality Finance has,
in line with its strategy, started to prepare in time for the leverage ratio
requirements that will enter into force in 2018, by improving its profitability
with the aim of collecting the required funds through the results of its
operations. 



“The credit rating decision by Moody's was in accordance with our expectations.
We are pleased that our persistent work in developing the company and
especially our risk management and related systems were highlighted in the
reasoning behind the decision. Our mission is to ensure the availability of
competitive funding for our customers under all market situations, which
naturally requires us to make particularly careful provisions for changes in
market situations, among other things,” says Pekka Averio, President and CEO of
Municipality Finance. 



Municipality Finance continues to be the only Finnish financial institution
with the best possible credit rating from the two most significant credit
rating agencies, Moody's and Standard&Poor's. Moody's has kept the credit
rating of Municipality Finance at Aaa since 2001. Furthermore, Municipality
Finance is the only institution, in addition to the Republic of Finland, that
has a AAA/Aaa credit rating with a stable outlook from two credit rating
agencies. 



Municipality Finance Plc



Further information:



Pekka Averio, President and CEO, tel. +358 500 406 856

Esa Kallio, Executive Vice President, Deputy to CEO, tel. +358 50 337 7953

Marjo Tomminen, Senior Vice President, CFO, tel. +358 50 386 1764

Attachments:

FINAL ENG Kuntarahoituksen_AAA_Moodys_20131115_OK_.pdf