Changes in OC Requirements for BRFkredit's Capital Centres

To NASDAQ OMX Copenhagen A/S
27 June, 2011
Announcement no 53/2011

Changes in OC Requirements for BRFkredit’s Capital Centres due to Moody’s Investors Service’s Recent Changes in the Danish Covered Bonds Model

Moody’s Investors Service changed the model for Danish covered bonds on 10 June 2011. Among other things this means that the Timely Payment Indicator (TPI) is reduced from ”Very High” to ”High” for the majority of the Danish covered bonds. 

Please see the attached announcement from Moody’s Investors Service for further clarification.

BRFkredit’scapitalcentres are - alongwith the majority of the Danish mortgage credit institutions - affected by these changes. Moody's has announced that the new OC requirements for BRFkredit’s Capital Centre E, Capital Centre B, and the General Capital Centre are increased. The current OC requirements, current paid up OC, and the new OC requirements are shown in the table below.
 

The overall increase inOC requirements to BRFkredit’s capital centres represents almost DKK 6 bncompared to the previous OC requirements.

In recent years, BRFkredit has had substantialcapital. Consequently, BRFkredit is considered to be sufficiently capitalised to meet this increase in the capital requirement. As shown in the table, BRFkredit’s capital centres generally have excess capital compared to previous OC requirements from Moody's. It is expected that the current rating for bonds issued by BRFkredit’s Capital Centre E, Capital Centre B, and the General Capital Centre will be maintained.
 

For additional information please contact:

Executive Vice President, Carsten Tirsbæk Madsen
Direct phone +45 45 26 28 71

Best regards,
BRFkredit a/s

Ulrikke Ekelund
Chief Economist
Direct phone: +45 45 26 22 57



Please observe that the Danish version of this announcement prevails.