Downgrade driven by absence of communication by the bank on its minimum level of overcollateralisation and current low level of overcollateralisation. Withdrawal for commercial reasons

A gradual reduction in the available supporting overcollateralisation, along with a lack of explicit commitment to maintaining minimum overcollateralisation above legal levels going forward, may negatively affect the rating.

Scope assigns first-time ratings to DKD’s public-sector covered bonds, reflecting the agency’s view on the issuer and the cover pool’s extra support. The fundamental support of the frameworks limits negative migration in the covered bond rating.