Nordic Credit Rating's (NCR) 'BBB' issuer rating and 'AAA' covered bond ratings on Norway-based mortgage company Eiendomskreditt AS are unchanged following the publication of its mid-2023 results and receipt of updated cover pool details.
Recent declines in commercial and multi-family housing property values have led to rising weighted average LTV (45.8% as of 30 Jun. 2023) as well as an increase in the share of exposures with LTV in the 50–60% range since year-end 2022. In addition, Eiendomskreditt's cover pool has greater single-name concentration than most Norwegian cover pools given the nature of commercial real estate loans in comparison with private residential mortgages. The top 25 exposures total 49.2% of the cover pool and had a weighted average LTV of 50.1% as of 30 Jun. 2023.
The latest full report by Nordic Credit Rating (NCR) explaining the components of the covered bond ratings is available here.
This commentary does not constitute a rating action.
Contacts:
Sean Cotten, chief rating officer, +46735600337, sean.cotten@nordiccreditrating.com
Ylva Forsberg, analyst, +46768806742, ylva.forsberg@nordiccreditrating.com