Rating

Kommuninvest has the highest possible credit rating; Aaa/AAA and P-1/A-1+ from Moody's and Standard & Poor's and are considered to have a very low exposure to ESG risks.

Our credit ratings, according to the credit rating agencies, reflect the following characteristics:

  • The explicit and joint guarantee from the owners
  • Strong credit quality in the lending portfolio
  • Access to a variety of diversified funding markets
  • Conservative risk management
  • Strong market position
  • Highly experienced management team
  • Predictable and stable capitalization plan

Credit rating

Credit rating Long termShort termProspects
Moody's Investors ServiceAaaP-1Stable
Standard & Poor'sAAAA-1+Stable

 

ESG rating

Kommuninvests ESG-betyg (environmental, social and governance) speglar att Kommuninvest anses ha låg exponering mot ESG-risker.


Credit rating

Category

ISS ESG

C+

Prime

MSCI

AA

n/a

Sustainalytics

13,1

Low ESG-risk

Last updated in January 2024

The guarantee from the members of Kommuninvest

The guarantee is the basis for Kommuninvest's strong credit rating. The commitment is worded as follows:

"As security for all obligations entered into or to be entered into by Kommuninvest i Sverige AB, the undersigned regions and municipalities jointly and severally guarantee as for their own debt in accordance with what is stated in the statutes of the Kommuninvest Cooperative Society."

Consequently, the members bear direct responsibility for Kommuninvest's borrowed funds, payment obligations under derivative contracts and other obligations.

Like all Swedish municipalities and regions, Kommuninvest has historically always fulfilled all its payment obligations. The guarantee design provides investors and other stakeholders with additional security in the face of the hypothetical situation that this would not happen. The warranty is explicit, irrevocable and unlimited.

Creditors can demand payment directly from guarantors

The guarantee is designed as a guarantee with joint and several liability. A guarantee means that if Kommuninvest is unable to settle an obligation, the counterparty can turn to one of the members of Kommuninvest and collect the amount. That member in turn has the right to claim compensation from other members under a recourse agreement.

New members are responsible for previously entered commitments

As the guarantee is formulated in general terms, new members assume responsibility for all commitments undertaken by Kommuninvest at the time they sign the guarantee and the obligations that the company undertakes thereafter.

Responsibility for departing members

The guarantee commitment applies until outstanding commitments mature, regardless of whether a member leaves Kommuninvest Ekonomisk Förening or is excluded before these commitments mature. After resignation or expulsion from the association, the member's liability for Kommuninvest's obligations is limited to the commitments that existed at the time the membership ended. Departing members are not responsible for obligations that arise after that time. No municipality or region has ever left the association after it became a member.

Documentation since 2020