Moody's review of bonds issued by BRFkredit ends. Rating Aa1 on Covered Bonds (SDOs) maintained

To NASDAQ OMX Copenhagen and the Press
25 March 2010
Announcement No. 31/2010




Moody's review of bonds issued by BRFkredit ends. Rating Aa1 on Covered Bonds
(SDOs) maintained 

As previously informed, Moody's Investors Service has placed the rating of
BRFkredit's bond issues in Capital Centre E, Capital Centre B and the General
Capital Centre on review for a possible downgrade. This review was a
consequence of the fact that at that time BRFkredit's issuer rating was reduced
from A2 to Baa1. 

The review process has now been completed, and as a conclusion Moody's has
stipulated new and higher requirements in terms of over-collateralisation for
the bonds issued by BRFkredit. Over-collateralisation is assets that provide
additional protection for issued mortgage bonds and covered bonds. 

To maintain existing ratings in all capital centres would necessitate the
raising of loan capital to an extent that, in an overall assessment, would be
inappropriate for BRFkredit. BRFkredit has thus informed Moody's that: 

- BRFkredit will secure over-collateralisation in Capital Centre E in excess of
the statutory capital requirement (solvency requirement), which means that SDOs
(Covered Bonds) issued in BRFkredit's Capital Centre E maintain the rating Aa1. 
- BRFkredit will continue to comply with the statutory capital requirements
(the solvency requirements) in Capital Centre B and the General Capital
Centre, but will not commit to increase the over-collateralisation further. 

On this background Moody's has in a separate announcement stated that: 

- The rating of SDOs (Covered Bonds) issued from BRFkredit's Capital Centre E
is maintained at Aa1 
- The rating of mortgage bonds issued from BRFkredit's Capital Centre B is
changed from Aa1 to Aa3 
- The rating of mortgage bonds issued from BRFkredit's General Capital Centre
is changed from Aa1 to Aa3. 

In this connection, BRFkredit will raise loan capital amounting to well over
DKK 7bn which will be comprised by an individual government guarantee. 

Since the beginning of 2008, BRFkredit has issued SDOs (Covered Bonds) from
Capital Centre E to fund mortgage lending. BRFkredit's Capital Centre B and the
General Capital Centre are no longer used to fund new mortgage lending. 

In this connection, CEO Sven A. Blomberg says:
- BRFkredit has focused on maintaining the rating of BRFkredit's SDOs at Aa1
and thus secure the foundation for a continued funding of BRFkredit's lending
at competitive rates. BRFkredit both meets Moody's significantly higher
requirement for over-collateralisation of the SDOs and the requirement to
commit to maintain over-collateralisation going forward. 

- BRFkredit has focused on finding a sustainable and balanced solution that
enables BRFkredit to maintain its ratings. It has been important to maintain a
high rating while at the same time taking into account the substantial
additional costs that increased borrowing would inflict on BRFkredit. The
ratings assigned now reflect a reasonable balance and give us no reason to
change the previously announced outlook for 2010. 


Further information:
- Press release from Moody's Investors Service (attached separately)
- Appendix: Detailed description of the review process
- A meeting will be held for analysts and investors at BRFkredit's head office
on Friday 26 March 2010 at 1 pm, Klampenborgvej 205, Kgs. Lyngby. Please
register for the meeting with Jacob Winthereik on phone (+45) 45 26 27 24 or by
e-mail to jwi@brf.dk 


For additional information, please contact:
Sven A. Blomberg, CEO,
Direct phone (+45) 45 26 25 00

Carsten Tirsbæk Madsen, Executive Vice President
Direct phone (+45) 45 26 28 71




Yours sincerely,

BRFkredit a/s

Ulrikke Ekelund
Chief Economist

Direct phone (+45) 45 26 22 57
E-mail uek@brf.dk