Kuntarahoitus Oyj - Company Announcement

Standard & Poor's affirms Municipality Finance Plc's AA+ credit rating

Municipality Finance Plc
Stock exchange release
13 December 2016, 15:30 EET

Standard & Poor's affirms Municipality Finance Plc's AA+ credit rating

The credit rating agency Standard & Poor's (S&P) affirmed its long-term credit
rating on Municipality Finance Plc to be maintained at AA+ on December
13, 2016. The outlook of the rating is stable. The short-term credit rating of
is still the best possible, A-1+.

Standard & Poor's assesses that Municipality Finance's capital has strengthened
considerably. The credit rating agency states that Municipality Finance's strong
ratings are based on the credit strength of the Finnish local government sector.
Standard & Poor's assesses Municipality Finance's business and financial risk
profiles as strong. This is based on their estimate on Municipality Finance's
business position, management and governance, combined with an assessment of the
company's funding, liquidity and capital adequacy.

Simultaneously with affirming Municipality Finance's rating, Standard & Poor's
has also affirmed maintaining its AA+ credit rating on the Municipal Guarantee
Board. The Municipal Guarantee Board exclusively guarantees Municipality
Finance's funding.

Under Standard & Poor's rating methodology Municipality Finance's ratings
reflect those of the Republic of Finland. The long-term credit rating on the
Republic of Finland is also AA+.

MUNICIPALITY FINANCE PLC

Further information:

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

Esa Kallio
Executive VP, Deputy to the CEO, Head of Capital Markets
Tel. +358 50 3377 953

Measured by the group's balance sheet, Municipality Finance Plc (MuniFin) is
Finland's third largest credit institution. The company is owned by Finnish
municipalities, the public sector pension fund Keva and the Republic of Finland.
MuniFin is an integral part of the Finnish public economy.

MuniFin's balance sheet totals nearly EUR 36 billion. Funding for the company is
primarily obtained through the international capital markets. MuniFin's funding
is guaranteed by the Municipal Guarantee Board.

MuniFin's mission is to ensure competitive funding for its customers in all
market conditions. The company's customers are Finnish municipalities, municipal
federations, municipally controlled companies and non-profit housing
corporations. A significant portion of lending is used for socially responsible
projects such as building hospitals, healthcare centers, schools, day care
centers and homes for the elderly.

The Municipality Finance Group also includes the subsidiary company, Financial
Advisory Services Inspira Ltd.

Read more: www.munifin.fi






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