Moody's forecast a stable future development for Mortgage bank

Today the international rating agency Moody's has approved the ratings
previously assigned to the Mortgage bank and has assigned them a stable future
outlook. 

The Moody's A2 rating assigned to the bank's long-term deposits, and P-1 to its
short term deposits, are investment level ratings. To the present moment, the
bank's long-term deposit rating has been on the maximum evaluation level for
the Latvian state - A2, therefore the deposit ratings may not be notched up
without revision of the maximum evaluation of the state. 

The Minister of Finance, Mr. Atis Slakteris appraises performance of the bank
and is satisfied at the positive evaluation of the rating agency: “the Mortgage
bank is the only state-owned bank in Latvia, who has been actively involved in
adjustment of the business environment. This moment is no exception, it is an
active player in the stabilisation process of national economy by taking part
in implementation of support programme for improvement of entrepreneurs'
competitiveness and increase of export volumes. The Mortgage bank's role being
a development bank becomes particularly essential at this moment, as it serves
as an instrument to stimulate the development of national economy. Therefore, I
am satisfied that the international rating agency has found Mortgage bank's
performance deserving the positive evaluation.” 
 
Board Member of the Mortgage bank, Mr. Andris Riekstiņš was happy to admit that
“ratings assigned to the Mortgage bank are the highest on the investment level
amongst those banks in Latvia not operating on ratings of their parent banks.
It has been achieved by a coordinated work, serving the country's best
interests, and an adequate risk management. 
The rating is important to the Mortgage bank when borrowing financial resources
from partner banks in the world and international finance institutions for
implementation of national importance target programmes, as well as the fact
that the bank is an issuer of debt securities traded on the stock exchange -
mortgage bonds.” 

The rating agency indicates in its report that the following aspects contribute
to the high credit rating of the Mortgage bank: 
•	the state ownership and consequent support;
•	sound asset quality despite rapidly growing loan portfolio;
•	good financial fundamentals based on consistent profitability and good
liquidity; 
•	leading role in mortgage bond issuance in Latvia, with positive implications
for the bank's funding profile. 
Mortgage and Land Bank of Latvia's liquidity management is adequate. The bank
has demonstrated its ability to attract interbank funding to support its
lending programmes to SMEs and housing. 

The bank's financial strength is assigned D-, retaining it at the present level.

The Mortgage bank is the only state-owned bank in the Baltic region. The
Mortgage bank group comprises subsidiary companies: HipoNIA, Hipolīzings, Hipo
Fondi and Risk Investment Company. 


Baiba Ābelniece
Public relations specialist 
Mortgage bank
Phone 67774244, 29117172