Moody's assigns backed (P)Aaa and (P)Prime-1 ratings to Propertize B.V.'s programme for state guaranteed debt.
Summary: Propertize B.V will be allowed to issue euro-commercial
Moody's Investors Service announced today that it has assigned backed provisional local-currency senior unsecured debt
ratings of (P)a and (P)Prime-1 to Propertize B.V.'s aAeu4,054,900,000
programme for the issuance of guaranteed euro-commercial paper and
guaranteed medium term notes which will be established on 22 January 2014.
Under this programme, Propertize B.V. (formerly known as Property
Finance, a former subsidiary of SNS Bank N.V., now owned by the Dutch
state's investment institution) will be allowed to issue euro-commercial
papers with an initial maturity of between one day and 364 days, and
medium-term notes with an initial maturity of between one and ten years.
No instrument will be issued with a maturity date beyond 31 December
2023, thereby ensuring such instruments benefit from the irrevocable and
unconditional guarantee from the Kingdom of the Netherlands (a,
Moody's will assign backed a, negative, and Prime-1 ratings to
guaranteed medium-term notes and euro-commercial paper issued under this
programme, reflecting the unconditional and irrevocable guarantee from
the Kingdom of the Netherlands.
Moody's notes that the guarantee provides for payments to be made on
demand, and that the guarantor is entitled to request evidence from the
security holders that their claim is valid. The Kingdom of the
Netherlands is however obliged to honour its obligation within ten days
after receipt of a valid demand. Moody's expects that claims will be paid
in a timely manner, reflecting the Dutch government's strong commitment
to preserving financial stability. Indeed, the transfer of Propertize to
the Dutch government, effective on 31 December 2013, along with the
establishment of the guaranteed programme for Propertize, are measures
that followed the nationalization of the SNS REL N.V. [(P)Ba2,
stable(m)] on 1 February 2013.
The negative outlook that will be assigned to the medium-term notes
issued under the program mirrors the outlook on the Dutch sovereign
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|Publication:||EMBIN (Emerging Markets Business Information News)|
|Date:||Jan 21, 2014|
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