Moody’s upgrades to Aaa their rating of covered bonds issued by Luminor

Moody’s Ratings (Moody’s) announced the upgrade of covered bonds issued by Luminor Bank. The action follows Moody’s upgrade of Luminor’s Counterpart Risk assessment to A1(cr) earlier this year.

Explaining its decision, Moody’s noted the credit strength of Luminor and the quality of the cover pool.

Palle Nordahl, Chief Financial Officer, said: ‘We are pleased that Moody’s has recognised the credit strengths of our pan-Baltic mortgage portfolio and our prudent risk culture. Our growing mortgage business in the Baltic region is valued by our customers for its advisory expertise and process speed.

On 30 April 2024, Moody’s upgraded Luminor Bank AS' long-term deposit ratings to A2 from A3 and the long-term senior unsecured ratings to A3 from Baa1. The Baseline Credit Assessment (BCA) and adjusted BCA was upgraded to baa2 from baa3, the senior unsecured medium-term note program ratings to (P)A3 from (P)Baa1 and its short-term deposit ratings were upgraded to P-1 from P-2. At the same time, the bank's long-term Counterparty Risk Ratings (CRR) and Counterparty Risk Assessments (CRA) were upgraded to A1 and A1(cr), from A2 and A2(cr), respectively. Short-term CRR and CRA were affirmed at P-1 and P-1(cr) respectively. The outlook on the long-term senior unsecured and deposit ratings was changed to stable from positive.