On 26 January 2023, Scope assigned a first time AAA rating with a Stable Outlook on the Norwegian mortgage covered bond (obligasjoner med fortrinnsrett, ISIN: NO0012427055) issued by specialised mortgage bank DNB Boligkreditt (DNBB). DNBB is fully owned by DNB Bank ASA.

Governance support is the primary rating driver, providing six notches of uplift above the issuer rating. Only two notches are needed to raise the covered bond rating to the highest achievable level.

We classified the interplay between complexity and transparency with a CPC category of ‘high’, allowing for an additional uplift from cover pool support of up to one notch above the governance uplift. Together, the programme benefits from a five-notch buffer against an issuer downgrade.

This monitoring note does not constitute a credit rating action, nor does it indicate the likelihood that Scope will conduct a credit rating action in the short term. Information about the latest credit rating action connected with this monitoring note along with the associated rating history can be found on www.scoperatings.com.

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