Moody's assigned Coop Pank mortgage covered bonds a provisional rating of (P)Aa2
Moody's Investors Service has assigned a provisional (P)Aa2 long-term rating to the mortgage covered bonds issued by Coop Pank AS (Coop Pank).
The international credit ratings agency Moody’s has analysed the planned issue of covered bonds by Coop Pank and considered, inter alia, the high credit quality of the assets backing the covered bonds, the support provided by the Estonian legal framework, which provides for the issuer's regulation and supervision, but also exposure to market risks and the increased uncertainty of the current economic environment. The long-term rating (P)Aa2 indicates high quality obligations that are subject to low credit risk.
According to Paavo Truu, CFO of Coop Pank, obtaining a credit rating is an important step to continue the preparations for the bond issue as planned and although the final date is subject to the market situation, we plan to issue the covered bonds in the first half of 2025. According to Paavo Truu the covered bonds offer an opportunity to further diversify funding and reduce costs.
Coop Pank is planning to offer covered bonds to European institutional investors. Covered bonds are expected to provide a new resilient source of funding for Coop Pank.
Coop Pank, based on Estonian capital, is one of the five universal banks operating in Estonia. The number of clients using Coop Pank for their daily banking reached 209,500. Coop Pank aims to put the synergy generated by the interaction of retail business and banking to good use and to bring everyday banking services closer to people’s homes. The strategic shareholder of the bank is the domestic retail chain Coop Eesti, comprising of 320 stores.
Additional information:
Paavo Truu
CFO
Phone:
E-mail:
