Kuntarahoitus Oyj - Company Announcement

Moody's affirms Municipality Finance Plc's Aa1 credit rating

Municipality Finance Plc
Stock exchange release
22 December 2016, 08:00 EET

Moody's affirms Municipality Finance Plc's Aa1 credit rating

The credit rating agency Moody's affirmed its long-term credit rating on
Municipality Finance Plc to be maintained at Aa1 on December 21, 2016 with
stable outlook. The short-term credit rating of is still the best possible,
Prime-1.

Moody's assesses that Municipality Finance's strong credit ratings are based on
its ownership and high market share in the Finnish regional and local government
sector and in the central government subsidized housing finance. Moody's
estimates that among the company's credit strengths are its good asset quality
and the predictability of its financial performance. Moody's states that its
credit rating is also based on Municipality Finance's diverse funding, good
liquidity, strong capitalisation and its low risk appetite.


Under Moody'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 Aa1.

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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