Moody's Investors Services
Global Credit Research
Rating Action
9 JUL 2001


Rating Action:


MOODY'S ASSIGNS Aa2 RATING TO DANISH MORTAGE BONDS ISSUED BY BRFKREDIT

Approximately EUR13 Billion of Debt Securities Affected.

London, 09 July 2001 -- Moody's Investors Service has assigned a Aa2 long-term credit rating to the mortgage bonds issued by BRFkredit out of its general capital centre.

The general capital centre is open, which means that future mortgage bonds will be issued out of this capital centre. Currently the rated mortgage bonds account for approximately 80 per cent of the total outstanding mortgage bonds.

The rating takes into account the protection provided to mortgage bond investors by the collateral and structure of Danish mortgage bonds. These protections include (1) the Balance Principle enshrined in the Danish Mortgage Credit Act, which ensures a relatively strict matching of the cash flows due under mortgage bonds, with those cashflows receivable from the underlying mortgage portfolios. The Act also limits currency and interest rate mis-matches, and the loan to value of each mortgage. A further protective factor is (2) the presence of over-collaterisation (as specified by the Mortgage Credit Act) which continues to be available to mortgage bond investors after any insolvency of a mortgage credit institution. Finally, mortgage bond investors are also protected by (3) the long-established track record of Danish mortgage bonds, the importance of mortgage bonds to the Danish financial system and the strong regulatory framework underlying this sector.

BRFkredit is focused on providing mortgage loans only and its credit portfolio is divided into residential mortgages (55 per cent), subsidised housing (approximately 25 per cent), private rental housing (approximately 10 per cent) and office and business properties (10 per cent).

BRFkredit is the third largest mortgage institution in Denmark in terms of assets (EUR19 billion). BRFkredit is owned by a foundation and has an exclusive co-operation with the market leading real estate agents, EDC, which is BRFkredit's primary distribution channel to the private segment.

London
Janne Thomsen
Senior Vice President
Financial Institutions Group
Moody's Investors Service Ltd.
44 20 7772 5454

London
Arjan Verbeek
Vice President - Senior Analyst
Structured Finance Group
Moody's Investors Service Ltd.
44 20 7772 5454




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