Central Bank of Savings Banks Finland Plc

Central Bank of Savings Banks Finland Plc - Company Announcement

Central Bank of Savings Banks Finland downgraded to 'BBB+' - the outlook is stable (Dec 2, 2015)

Central Bank of Savings Banks Finland Plc
Stock Exchange Release
23 February 2016 at 16.40 (CET +1)

Credit rating agency Standard & Poor's Rating Services (S&P) lowered the long-term counterparty credit ratings on the Central Bank of Savings Banks Finland Ltd from 'A-' with a negative outlook to 'BBB+' with a stable outlook. However, the short-term rating of 'A-2' was maintained. The Central Bank acts as the central credit rating agency for the Savings Bank Group.

Previous S&P's rating report was from April 2015.

In its rating report S&P considers that the EU's Bank Recovery and Resolution Directive (BRRD), once implemented, reduces the predictability of government support for systemically important commercial banks in the region. Hence S&P reclassifies government support as "support uncertain" and removes notches of extraordinary government support from the ratings on affected banks when their governments fully implement BRRD into national law. Finland will implement BRRD on Jan 1, 2016 and hence the uplift is removed from the Central Bank of Savings Bank Finland Ltd as well.

Furthermore, S&P's report points out that despite the deteriorating economic outlook of the Finnish central government, the positive expectations on Savings Banks Group's profit development and strategy's functionality improves the rating outlook to 'stable'.

CENTRAL BANK OF SAVINGS BANKS FINLAND PLC

Further information:
Teemu Salmi, Senior Communication Manager
teemu.salmi@saastopankki.fi

Central Bank of Savings Banks Finland Plc belongs to the Savings Banks Amalgamation. The role of the Central Bank of Savings Banks Finland Plc is to ensure the liquidity and borrowing activities of the Savings Banks Group. It acquires funds and operates in the money markets and capital markets on behalf of the Group as well as manages payment transfers. The Central Bank also manages the internal balancing of the Group's liquidity.