Kuntarahoitus Oyj - Company Announcement

Standard & Poor's upgrades Municipality Finance Plc's rating outlook from negative to stable

Municipality Finance Plc
Stock Exchange Release
3 October 2016 at 9:30 EET

Standard & Poor's upgrades Municipality Finance Plc's rating outlook from
negative to stable

The credit rating agency Standard & Poor's has revised the outlook on
Municipality Finance's long-term credit rating from negative to stable on
September 30, 2016. The rating is affirmed at AA+.

The change on Municipality Finance's rating outlook reflects the similar upgrade
on the Republic of Finland on September 16, 2016. Standard & Poor's expects
Finland's economic growth to gradually recover as a result of competiveness-
boosting measures.

S&P's rating for Municipality Finance's short-term credit rating remains
unchanged the best possible, A-1+.

Standard & Poor's revised also the outlook on Municipal Guarantee Board's AA+
rating from negative to stable on September 30, 2016. 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 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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