Fitch upgrades Greek deals as S&P spies stability
Fitch has upgraded a series of Greek covered bonds, following the sovereign upgrade of the Hellenic Republic and of Greek banks. Meanwhile, Standard & Poor’s said covered bonds had recently shown rating stability despite the fragile environment.
BPM bonds headed for triple-B
Banca Popolare di Milano’s covered bonds face a ratings cut after Moody's downgraded the bank on Thursday. Although BPM’s bonds will remain investment grade, more and more covered bonds are slipping into triple-B territory, said analysts, though structural enhancements could help stop the slide.
Fitch calls for greater Pfandbrief disclosure
The provision for loan-to-value disclosure in proposed changes to the German Pfandbrief Act are credit positive, said Fitch on Wednesday. But the provision of whole loan LTV disclosure would be better as it would give investors a clearer picture of default risk.
A3 stamp for Denizbank debut
Denizbank is a step closer to making its covered bond debut after receiving a A3 rating from Moody’s this week.
Moody’s cuts Carige, covered bonds next
Moody’s has downgraded Italy’s Banca Carige and will turn its attention to the issuer’s covered bonds, which traders expect to come under selling pressure in the secondary market.
Ratings stabilise but remain vulnerable
The proportion of covered bond programmes rated triple A remained stable in the first quarter said Fitch. However, the downgrade bias is still in place and the rating of many covered bonds is sensitive to the issuer's rating.
Shipping crisis keeps pressure on Germans
The shipping crisis will last longer than expected and is keeping German banks in particular under pressure, Fitch said on Thursday.
Cédulas investors protected despite asset transfer, says Fitch
The transfer of assets from Spanish banks to the country’s bad bank (Sareb) has reduced the collateral available to protect Cédulas investors, Fitch said on Wednesday. However, the fall has been compensated by an increase in higher quality eligible collateral, so the net reduction in security value has been relatively small.
Commerzbank and Hypfra downgraded
Moody’s downgrade of Commerzbank and Hypothekenbank Frankfurt (Hypfra) will leave Commerzbank’s covered bonds unscathed but push Hypfra’s public sector bonds down to Aa2, analysts said on Wednesday.
Moody’s gives SMEs ratings boost
The rating stability of ABS backed by small to medium sized enterprises is high, according to latest research from Moody’s. The news may cause covered bond purists to reconsider their view on SME backed bonds, which they believe should not have "covered bond" status, as SME backed loans are less secure than those backed by mortgages.