Moody's Investors Service has assigned a provisional (P)Aa1 long-term rating to the mortgage covered bonds issued by AS LHV Pank.
The international credit ratings agency Moody’s has analysed the planned issue of covered bonds by LHV Pank and considered, inter alia, the high credit quality of the assets backing the covered bonds, the support provided by the Estonian legal framework, which provides for the issuer's regulation and supervision, but also exposure to market risks and the increased uncertainty of the current economic environment. The long-term rating (P)Aa1 indicates high quality obligations that are subject to very low credit risk.
"Obtaining a credit rating is an important step in order to continue the preparations for the bond issue as planned and although the final date is subject to the market situation, we plan to issue the covered bonds in early summer," said
LHV Pank is planning to offer covered bonds to European institutional investors.
Covered bonds are expected to provide a new resilient source of funding for LHV. Covered bonds also provide LHV with the opportunity to use liquidity offers from the
On the proposal of the
LHV began issuing home loans in 2016. With the acquisition of the private customer loan portfolio of Danske Bank A/
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Email: priit.rum@lhv.ee
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