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S&P has a renewed rating methodology for public-sector funding agencies – MuniFin’s rating under observation

Municipality Finance Plc
Stock exchange release
23 May 2018 at 1:30 p.m. (EET)

S&P has a renewed rating methodology for public-sector funding agencies – MuniFin’s rating under observation

Credit Rating Agency Standard & Poor’s published a new rating methodology for non-U.S. public-sector funding agencies on 22 May 2018. Due to the new methodology S&P has placed ratings of public-sector funding agencies in this category under criteria observation (“UCO”).

Consequently, the methodology change has placed also Municipality Finance Plc’s rating under criteria observation together with nine similar entities in the same category. MuniFin’s S&P credit rating for long-term funding is AA+ (stable). However, MuniFin’s credit rating, according to the previous and the new methodology, cannot be higher than the credit rating of the Republic of Finland (AA+).

With this new methodology the S&P aims to take better into account the characteristics of public-sector funding agencies’ not-for-profit or at least not profit-maximizing mission and assess their stand-alone credit profile and the likelihood and impact of extraordinary support provided by potential supporting governments or public sector entities.

More information on S&P’s rating methodology under


Esa Kallio, President and CEO
tel. +358 50 337 753

Measured by the balance sheet, MuniFin (Municipality Finance Plc) is Finland’s second largest credit institution: the company’s balance sheet totals nearly EUR 35 billion. The company is owned by Finnish municipalities, the public sector pension fund Keva and the Republic of Finland.

MuniFin’s mission is to build a better future in line with the principles of responsibility and in cooperation with its customers. MuniFin’s customers are Finnish municipalities, municipal federations, municipally controlled companies and non-profit housing cor­porations. Lending is used for environmentally and socially responsible investment targets such as public transportation, sustainable buildings, hospitals and healthcare centers, schools and day care centers, and homes for people with special needs.

MuniFin’s customers are domestic but the company operates in a completely global business environment. It is the most active Finnish bond issuer in international capital markets and the first Finnish green bond issuer. The funding is exclusively guaranteed by the Municipal Guarantee Board.

The Municipality Finance Group also includes the subsidiary company, Financial Advisory Services Inspira Ltd.