Rating, Sustainability and Regulatory Conditions

RATING

After the rating agency Moody’s raised its ratings for our senior unsecured liabilities from A2 to A1 in January 2016 along with its rating for long-term deposits from A2 to Aa3, no further changes to our ratings took place over the remaining course of the year.

Moody’s saw no need to make changes as the effects it had previously noted were still valid. The agency continued to acknowledge that the risk content of MünchenerHyp’s loan portfolio had improved as the Bank had notably reduced its portfolio of loans originated in countries within the euro area that had been harder hit by the debt crisis, as well as its portfolio of loans to banks domiciled in these countries, and also its portfolio of loans originated within the USA. Furthermore, Moody’s again favourably commented that MünchenerHyp had a solid reputation in the capital markets as an issuer of Pfandbriefe and thus a correspondingly high level of refinancing strength. The Bank’s firm ties and support within the Cooperative Financial Network were also favourably noted by the agency.

Moody’s continued to favourably point out that MünchenerHyp’s increase in equity capital had enabled the Bank to meet the leverage ratio requirement.

Current ratings at a glance:
 Rating
Public PfandbriefeAaa
Mortgage PfandbriefeAaa
Senior unsecured liabilitiesA1
Short-term liabilitiesPrime-1
Long-term depositsAa3

The outlook for all ratings is stable.

The quality of the cover pool plays a greater role in ratings for Pfandbriefe since the agency revised its rating methodology in 2015. Even to achieve its highest rating of Aaa, Moody’s only requires that legal requirements are observed, thus voluntary provision of surplus cover is not required.

Our long-term unsecured liabilities are rated AA- by the rating agency Fitch due to the group rating assigned to the Cooperative Financial Network by the agency.