Nordics

DnB Nor is setting up a new institution to issue covered bonds backed by commercial mortgages, while DnB Nor Boligkreditt will continue to focus purely on residential mortgage-backed issuance.

Skandinaviska Enskilda Banken is today (Friday) testing the market for a new benchmark covered bond, The Cover understands.

Moody’s yesterday (Wednesday) downgraded SpareBank 1 Gruppen’s long term issuer rating from A3 to Baa1, and left the rating on negative outlook, a day after cutting three members of the SpareBank 1 Alliance by one notch.

Aareal’s debut SoFFin-backed issue has been the highlight of government-guaranteed supply this week, while BNP Paribas is today (Wednesday) adding momentum to a reopening of the unguaranteed senior bank market.

Moody’s yesterday (Tuesday) downgraded three Norwegian savings banks that are members of the SpareBank 1 Alliance from Aa3 to A1.

Fitch Ratings on Friday changed from stable to negative the outlook of Sparebank 1 SMN’s and Sparebank 1 Nord-Norge’s long term A ratings and put Sparebank 1 SR Bank’s long term individual debt rating of A on negative watch.

Five medium-sized Norwegian savings banks have put in place the necessary preparations to issue covered bonds and received approval to swap these with the central bank for government securities under the country’s Nkr350bn (Eu39bn) support scheme.

The Finnish government confirmed on Friday (27 January) that it will guarantee bank debt issued up to 30 April that refinances outstanding debt. This means that while covered bonds are theoretically included in the Eu50bn package, none will yet be a part of it.

Moody’s downgraded Swedbank’s senior unsecured debt from Aa3 to A1 with a negative outlook this (Friday) morning.

The US should look to the Danish mortgage bond system for lessons on how to operate a stable and functioning market, suggested panellists on a forum hosted by Nykredit at the Euromoney Bond Investors Congress on Tuesday.

Moody’s on Friday concluded a review for possible downgrade of Danske Bank’s rating by cutting the bank by two notches from Aa1 to Aa3, with a stable outlook.

Fitch and Standard & Poor's have downgraded Danske Bank, citing the economic downturn in many of the countries in which the Denmark-based bank operates.