Luminor Bank steps closer to covered bond issuance with Moody’s rating

By Bill Thornhill
16 Jan 2020

An Estonian covered bond could soon be due in the market after Moody’s rated Luminor Bank’s programme this week — the first to be structured under the country’s newly established law. The rating comes after the European Central Bank granted Luminor a license to issue covered bonds in December.

On Monday Moody's assigned a provisional long-term rating of Aa1 to mortgage covered bonds issued by Luminor Bank. 

Luminor's deposit rating is Baa1 with a stable outlook. The counter-party risk assessment rating, which is governed by the Estonian Covered Bond Act, is pegged at A3.

The covered bonds will ...

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