Nordic Credit Rating (NCR) has affirmed its 'BBB' long-term issuer rating on Norway-based mortgage company Eiendomskreditt AS, and withdrawn the rating at the issuer's request. At the time of withdrawal, the outlook was stable. The 'N3' short-term rating, 'AAA' covered bond rating, 'BBB' senior unsecured rating, 'BB+' Tier 2 instrument rating, and 'BB-' additional Tier 1 instrument rating were also affirmed and withdrawn.
Rating rationale
The affirmation reflects Eiendomskreditt's continued stable performance, despite continued pressure in the Norwegian real-estate sector. The company's loan growth quieted in the first half of 2026 following an active second half of 2025 but remained positive. Improved capital ratios following the implementation of CRR3 in 2025 support continued room for growth, however persistently high interest rates in Norway remain a dampening factor on demand. Interest rates have also impacted loan performance, with net Stage 3 loans rising to 3.6% of the loan book as of 30 Jun. 2026, having remained above 3% since 2023. The company continues to report very modest loan loss provisions. However, given very strong collateralisation, we do not view the low coverage ratio as a material cause for concern.
The long-term issuer rating reflects Eiendomskreditt's strong capitalisation, earnings and low historical credit losses. The rating is constrained by the company's concentrated loan portfolio, modest market position and concentrated funding profile.
The issue rating on Eiendomskreditt's covered bonds reflects the 'BBB' issuer rating and the company's role as a commercial real-estate lender and partner to small and medium-sized Norwegian banks. The covered bond ratings are supported by an 'a+' qualitative assessment and our analysis of up to four notches of support from the cover pool, indicating 'AAA'-level support for bondholders in the unlikely event that the pool were to become a standalone entity. Refer to the latest full rating report for an overview of the covered bond rating components. The standalone analysis of the cover pool as of 30 Jun. 2026 confirms the four notches of support included in the 'AAA' covered bond rating.
Stable outlook
At the time of withdrawal, the outlook was stable, reflecting our view that Eiendomskreditt will retain a niche, but central, role in the Norwegian real-estate market for the foreseeable future. The stable outlook also reflects our view that its prudent underwriting and strong capitalisation mitigates against significant losses despite an uncertain market. We expect no material changes in the company's access to the covered-bond market.
Relevant research and rating actions
(i) Eiendomskreditt AS 'BBB' long-term issuer rating affirmed with stable outlook; removed from criteria review, 17 Oct. 2025
| Rating list | Withdrawal | To | From |
|---|---|---|---|
| Long-term issuer credit rating: | NR | BBB | BBB |
| Outlook: | - | Stable | Stable |
| Short-term issuer credit rating: | NR | N3 | N3 |
| Covered bond issue rating: | NR | AAA | AAA |
| Senior unsecured issue rating: | NR | BBB | BBB |
| Tier 2 issue rating: | NR | BB+ | BB+ |
| Additional Tier 1 issue rating: | NR | BB- | BB- |
Contacts:
Ylva Forsberg, analyst, +46768806742, ylva.forsberg@nordiccreditrating.com
Christian Yssen, analyst, +4740019900, christian.yssen@nordiccreditrating.com
Sean Cotten, lead senior analyst, +46735600337, sean.cotten@nordiccreditrating.com
The methodology documents used for this rating are NCR's Financial Institutions Rating Methodology published on 12 May 2025, NCR's Rating Principles published on 14 Feb. 2024, NCR's Group and Government Support Rating Methodology published on 14 Feb. 2024 and NCR's Covered Bond Rating Methodology published on 12 May 2025. For the full regulatory disclaimer please see the rating report.