Annoucement 3/2001

Moody's assigns Aa2 rating to BRFkredit bonds

Moody's Investors Service has assigned BRFkredit’s open bond series an Aa2 long-term credit rating.

BRFkredit has primarily requested a rating in order to improve the international marketing of BRFkredit bonds.

Moody's focuses in the credit rating on the high security which characterises the BRFkredit bonds.

Moody's underlines in their press release that BRFkredit’s loan portfolio is divided into residential mortgages (55%), subsidised housing (approx. 25%), private rental housing (approx. 10%) and office and business properties (10%). Moody's furthermore pays attention to the strength of BRFkredits' distribution network in the private segment by the exclusive co-operation agreement with Denmark’s leading real estate agents, the EDC Mæglerne.

Sven A. Blomberg, CEO:

"It is the first time that BRFkredit has requested a rating and we are pleased to note that Moody's assigns a rating of Aa2 to BRFkredit's bonds. A rating of Aa2 is used by Moody'’s when rating bonds, which are judged to be of high quality by all standards. The rating of BRFkredit bonds reflects the high quality of BRFkredit's portfolio. Approx. 90% of BRFkredit’s portfolio is within the private segment, while the rest is office and business properties. BRFkredit has succeeded in stabilising and maintaining a market share in the private segment.

BRFkredit has a strong capital base. By the end of 2000 the solvency ratio was 13.8%, which equals an excess capital of 3.6 billion DKK. Calculated on the basis of the core capital (Tier 1) the solvency ratio was 12.2% by the end of 2000"

For further comments please contact Sven A. Blomberg, CEO, phone (+45) 4526 2500, or Head of Treasury, Lars W. Sandberg, phone (+45) 4526 2701 or Chief Economist Jens Christian Nielsen phone (+45) 4526 2872.

Moody's assigns Aa2 rating to Danish mortage bonds issued by BRFkredit