New analysis on mortgage covered bonds issued by Totens Sparebank Boligkreditt AS
Totens Sparebank Boligkreditt AS’s covered bond ratings reflect a six-notch rating uplift from the A- issuer rating. The primary rating driver is cover pool support, reflecting the issuer’s sound credit quality and the strong cover pool comprising domestic, residential, low LTV assets that are resilient to high credit stresses.
Governance support provides the covered bonds with five notches of uplift above the issuer rating which reflect our assessment of the strong governance support.
Provided that the covered bond programme’s risk structure does not change materially, the current covered bond ratings supported by the cover pool could remain unchanged up to a two-notch downgrade of the issuer – also supporting the Stable Outlook on the covered bonds.
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. On 5 September 2023, Scope affirmed the covered bonds at AAA/Stable. Click here for the corresponding press release.
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