Press release -
S&P affirms Kommuninvest’s AAA credit rating, with a stable outlook
On 22 May 2018, S&P Global Ratings (S&P) announced a new methodology for rating non-U.S. public-sector funding agencies, specialized not-for-profit institutions established to secure and provide cost-efficient funding to public sector entities in their domicile country or region. As a result of the new methodology, S&P announced that it had placed ratings of ten public-sector funding agencies, including Kommuninvest i Sverige AB (Kommuninvest), under criteria observation (UCO).
S&P has now announced the completion of its review of Kommuninvest, and has affirmed its AAA long-term credit rating of Kommuninvest, with a stable outlook. The short-term credit rating is A-1+. S&P has also removed Kommuninvest from UCO.
The stable outlook reflects S&P’s expectation that Kommuninvest’s guarantee structure will remain unchanged and that the agency will continue to benefit from unwavering membership support. S&P expects Kommuninvest’s management to maintain low risk tolerances and continue to contain risks associated with the wholesale funded nature of its activities. S&P also expects that Kommuninvest will successfully navigate instances of regulatory risk and continue to pre-empt situations so that its low risk profile, lending services, and ultimately the execution of its public policy role, are not impacted.
The rating report is available for download as an attachment to this release.
Contact information
Marie Viimne, Chief Operating Officer, tel: +46 703 33 69 02, e-mail: maria.viimne@kommuninvest.se
Christian Ragnartz, Head of Debt Management, tel: +46 706 07 38 34, e-mail: christian.ragnartz@kommuninvest.se
Björn Bergstrand, Head of Media Relations, +46 708 86 94 76, e-mail: bjorn.bergstrand@kommuninvest.se
Topics
Kommuninvest is a municipal cooperation for efficient and sustainable financing of housing, infrastructure, schools, hospitals etc. Together, we get better loan terms than each one individually. Since its inception in 1986, the Kommuninvest collaboration has helped lower the local government sector’s borrowing costs by many billion kronor. Currently, 288 municipalities and county councils/regions are members of this voluntary cooperation, out of a total of 310 Swedish local governments. With total assets of around SEK 360 billion (USD ~41 billion), Kommuninvest is the largest lender to the local government sector and the sixth largest credit institution in Sweden. The head office is located in Örebro.
