Kuntarahoitus Oyj - Company Announcement

Standard & Poor's revised Municipality Finance Plc's AA+ rating outlook to negative

Municipality Finance Plc
Stock Exchange Release
9 October 2015 at 09:00 (CET +1)

Standard & Poor's revised Municipality Finance Plc's AA+ rating outlook to
negative

Credit rating agency Standard & Poor's has revised the outlook on Municipality
Finance's long-term credit rating to negative from stable on October 9, 2015.

The revision of the outlook on Municipality Finance's credit rating is a
consequence of the similar outlook revision on the Republic of Finland. Under
Standard & Poor's criteria, Municipality Finance cannot be rated above the
sovereign.

Standard & Poor's revised the sovereign's AA+ rating's outlook to negative from
stable on September 25, 2015. According to the agency, the weakening of the
sovereign's rating outlook is a result of the risk that Finland's economic
growth will fail to pick up markedly despite the new government's commitment to
structural reforms.

In the same rating action and with the same rationale, Standard & Poor's also
changed its outlook on Municipal Guarantee Board's AA+ rating similarly to
negative from stable. Municipal Guarantee Board exclusively guarantees
Municipality Finance's funding.

MUNICIPALITY FINANCE PLC

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

Measured by the group's balance sheet, MuniFin (Municipality Finance Plc) 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 34 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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