Fitch Rates Nykredit Realkredit's EUR500m Senior Unsecured FRNs 'A(EXP)'

Tue Sep 2, 2014 4:22am EDT

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(The following statement was released by the rating agency) LONDON, September 02 (Fitch) Fitch Ratings has assigned Nykredit Realkredit's (A/Stable/F1) planned issue of EUR500m senior unsecured floating rate notes an expected rating of 'A(EXP)'. The final rating is contingent upon final documents conforming to information already received. KEY RATING DRIVERS The notes are senior unsecured and have been rated in line with Nykredit Realkredit's Long-term Issuer Default Rating (IDR), which in turn is driven by Nykredit Realkredit's standalone strength, as reflected by its 'a' Viability Rating (VR). RATING SENSITIVITIES As the notes' rating is aligned with Nykredit Realkredit's Long-term IDR, their rating is primarily sensitive to any change in this rating. The notes' rating is also sensitive to a wider notching if Fitch changed its assessment of the loss severity risk. The assumption about loss severity is particularly important to Nykredit Realkredit's unsecured creditors given its highly encumbered balance sheet resulting from a covered bonds led funding structure. In itself, issuing senior unsecured debt instruments for the same purpose as junior covered bonds should not alter the riskiness for other senior unsecured creditors. Contact: Primary Analyst Jens Hallen Senior Director +44 20 3530 1326 Fitch Ratings Limited 30 North Colonnade London E14 5GN Secondary Analyst Olivia Perney Guillot Senior Director +33 144 299 174 Committee Chairperson Erwin van Lumich Managing Director +34 93 323 8403 Media Relations: Elaine Bailey, London, Tel: +44 203 530 1153, Email: elaine.bailey@fitchratings.com. Additional information is available on www.fitchratings.com Applicable criteria, "Global Financial Institutions Rating Criteria", dated 31 January 2014, is available at www.fitchratings.com. Applicable Criteria and Related Research: Global Financial Institutions Rating Criteria here Additional Disclosure Solicitation Status here ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

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