Credit and ESG ratings

Credit ratings

MuniFin’s strong credit ratings are based on our extremely low-risk customer financing portfolio, good liquidity, conservative risk policies and the guarantees granted by the Municipal Guarantee Board for our debt programmes and other funding arrangements.

Our funding is guaranteed by the Municipal Guarantee Board (MGB), and our credit ratings correspond to those of the Government of Finland. MuniFin is 100% owned by the Finnish public sector and supervised by the European Central Bank.

For the purposes of art. 138(g) of Regulation 575/2013 (as amended, the “CRR”), MuniFin constitutes an institution owned by local authorities and a central government. Accordingly, although credit ratings in respect of MuniFin may incorporate assumptions of implicit government support, MuniFin believes that institutions subject to the CRR may use such ratings in determining the risk weights assigned to exposures to MuniFin’s debt.

ESG ratings

ESG risk ratings measure a company’s exposure to long-term environmental, social and governance risks. Different ESG ratings employ different methodologies, so they are not directly comparable with each other. In practice, however, they cover similar themes, such as sector-specific risk, manageable risk and the company’s overall ESG strategy and operating methods. MuniFin monitors its development through the ratings of several well-known ESG rating agencies.