Nordics

Moody’s yesterday (Monday) downgraded Terra Boligkreditt’s covered bonds from Aaa to Aa2 and placed them on review for further downgrade.

Skandinaviska Enskilda Banken is due to price a Eu1bn five year mortgage-backed benchmark later today (Tuesday). Market participants have been encouraged to see a jumbo from a new jurisdiction and were today working out just what the implications of the deal are for other potential issuers.

Skandinaviska Enskilda Banken is today (Monday) tapping the market with a five year benchmark covered bond, the first in six months for an issuer away from France and Germany.

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.