Nordic Credit Rating's (NCR's) 'A' issuer rating and 'AAA' covered bond ratings on Danske Hypotek AB (publ) are unchanged following the publication of its mid-2022 results and receipt of updated cover pool details. Today NCR published its bi-annual statistical summary of Danske Hypotek's cover pool, revealing trends in the characteristics of the cover pool assets and associated loans.
The company added multi-family housing and commercial mortgages to the cover pool during the first half, which is reflected throughout the report. Recent declines in housing prices have yet to affect the overall loan-to-value in Danske Hypotek's portfolio, but are likely to increase loss given default as property valuations are updated.
This commentary does not constitute a rating action.