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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,

negative).

RATINGS RATIONALE

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

long-term rating.

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Publication:EMBIN (Emerging Markets Business Information News)
Date:Jan 21, 2014
Words:342
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