Kuntarahoitus Oyj - Company Announcement

Moody’s confirms the Aaa rating for Municipality Finance Plc and the Municipal Guarantee Board

Aaa rating is a recognition of the strength of the local government funding
system 

The credit rating agency Moody's confirms in its recent reports the Aaa rating
with stable outlook for Municipality Finance Plc (MuniFin) and the Municipal
Guarantee Board (MGB). 

The rating drivers for MuniFin are its importance as a lender to the Finnish
regional and local government, which is implicated by its market share and
ownership structure. MGB's credit strengths are its joint guarantee by the
Finnish municipalities and very predictable financial performance. MuniFin's
solid risk management improves the overall balance, the reports state. Moody's
also estimates that the current financial situation of the Finnish
municipalities is still strong. 

Moody's Research confirming MGB's Aaa rating was published on 20 November,
2014. MuniFin's Aaa rating was confirmed in Moody's Credit Opinion on 14
October, 2014. 

MuniFin lends exclusively to its customers in the municipal sector and
state-subsidised housing production. MGB in its part guarantees MuniFin's debt.
The both organisations' credit ratings are linked to the rating agencies'
estimates on Finland's public economy and especially on the strength of the
municipality sector. 

Further information:

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

CEO, Managing Director Heikki Niemeläinen, Municipal Guarantee Board, tel. +358
40 589 8348