FRIC Practitioner Seminar: Credit ratings of covered bonds – An issuers perspective

Credit ratings from the global credit rating agencies like Standard & Poors, Fitch and Moody’s play a significant role in financial regulation and internal investment guidelines for banks and institutional investors.

For Danish mortgage banks ratings play an important role in determining which investors the bank’s covered bonds can be sold to and at which price. But ratings also carry a cost in the form of capital or other assets committed to maintain a certain rating. In this seminar we will look at the dynamics behind ratings of covered bonds and the cost/benefit considerations for the issuer when determining the rating strategy.