Scope Ratings GmbH (Scope) monitors and reviews its credit ratings on an ongoing basis and at least annually, or every six months in the case of sovereigns, sub-sovereigns and supranational organisations.

Scope performs monitoring reviews to determine whether material changes and/or changes in macroeconomic or financial market conditions could have an impact on the credit ratings. Scope considers all available and relevant information when undertaking the monitoring review.

Monitoring reviews are conducted by performing a peer comparison, benchmarking against the rating-change drivers, and/or reviewing the credit ratings’ performance over time, as deemed appropriate by the Lead Analyst or Analytical Team Head, in addition to an assessment of all aspects of the relevant methodology/ies, including key rating assumptions and model(s). Scope publicly announces the completion of each monitoring review on its website.

Scope completed the monitoring review for the Danish mortgage covered bonds (‘særligt dækkede realobligationer’) issued by Realkredit Danmark A/S (Realkredit) out of capital centre S and capital centre T, both rated AAA/Stable, on 20 June 2023.

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.

Key rating factors

Sound issuer rating (positive). Realkredit has a solid issuer rating of A+. It is a core and closely integrated subsidiary of Danske Bank A/S, which itself has a solid market position. As the second largest mortgage lender in Denmark, Realkredit has reassuring profitability and prudential capital metrics.

Governance support (positive). Governance support is the primary rating driver for both capital centres. It provides the covered bonds with six notches of uplift above the issuer rating. As such, only four notches are needed to raise the covered bonds ratings to the highest achievable level.

The methodology applicable for the reviewed ratings and rating Outlooks (Covered Bond Rating Methodology, 24 May 2023) is available on https://scoperatings.com/governance-and-policies/rating-governance/methodologies.
This monitoring note is issued by Scope Ratings GmbH, Lennéstraße 5, D-10785 Berlin, Tel +49 30 27891-0.
Lead analyst: Reber Acar, Associate Director

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