• Kommuninvest’s lending is provided exclusively to Swedish municipalities, municipal corporations, county councils and borrowers guaranteed by local government authorities. Kommuninvest’s lending therefore carries a 0 per cent risk weight from the perspective of capital coverage.

   

• Since all lending carries a 0 per cent risk weight, large exposures only arise within the management of Kommuninvest’s surplus liquidity. When calculating large exposures, Kommuninvest adheres to the applicable regulation stating that no individual exposure may exceed 150 million euros, providing that the exposure does not exceed 100 per cent of the capital base. Kommuninvest has no large exposures that exceed this limit. Read more about capital coverage.   

   

• Kommuninvest’s owners – 265 Swedish municipalities and county councils – have mandated Kommuninvest to act as the Swedish Local Government Debt Office. This mandate remains unchanged.

   

• Kommuninvest’s high creditworthiness, AAA/Aaa, has been confirmed by Standard & Poor’s and Moody’s during 2011. Standard & Poor’s credit opinion was dated June 30 and Moody’s was dated October 11. The rating rationale emphasizes among other things the explicit guarantee, the joint and several guarantee signed by all members of the Kommuninvest Cooperative Society and supporting all obligations by Kommuninvest i Sverige AB. Read more.  

   

• Swedish local governments have a constitutional right to charge taxes for carrying out their remit. The tax base is based on the residents' income, and each municipality and county council sets its own tax rate. Income from taxation accounts for some 70 per cent of total income. Their special status according to the Swedish constitution and the right of local authorities to levy taxes mean that municipalities and county councils cannot be declared bankrupt. Nor can they cease to exist for other reasons. Read more about creditworthiness of the local government sector.  

For further information
Maria Viimne, Deputy President, Tel: +46 10 470 87 11, Mobile: +46 70 333 69 02,
e-mail: maria.viimne@kommuninvest.se