Press Release
DBRS, Inc. Puts 55 Classes from 6 European Covered Bond Transactions Under Review with Negative Implications
Covered BondsDBRS, Inc. (DBRS) has today placed 55 ratings from 6 European covered bonds transactions Under Review with Negative Implications.
Below is the list of European Covered Bond transactions rated by DBRS, Inc. that have been placed Under Review with Negative Implications:
• Banco Comercial Portugues Covered Bond Programme
• Banco de Investimento Imobiliario Covered Bond Programme
• Banco Espirito Santo, S.A. Covered Bonds Programme
• Bank of Ireland Mortgage Bank Mortgage Covered Securities Programme
• Montepio Covered Bonds Programme
• Santander Totta Covered Bond Programme
The rating actions reflect the May 22, 2012 DBRS placement of the Republic of Portugal’s and Republic of Ireland’s long-term foreign and local currency debt ratings Under Review with Negative Implications (see the related press releases regarding the sovereign actions in the “Related Research” section).
DBRS will undertake a review to determine the impact of any potential sovereign downgrades on the transactions and will promptly publish updated rating actions that may either result in a confirmation or a downgrade. DBRS employs a case-by-case approach that is jurisdiction-specific and asset-class specific with the risks and protections of each transaction identified and considered. The lower the sovereign rating, the greater relevance and potential impact it has on securitisation ratings due to less favorable macroeconomic conditions, stress factors related to the transaction parties and increased likelihood for unknown events to occur.
The principal methodologies applicable are:
• Rating European Covered Bonds
• Master European Residential Mortgage-Backed Securities Rating Methodology
• Legal Criteria for European Structured Finance Transactions
• Operational Risk Assessment for European RMBS Servicers
• Unified Interest Rate Model Methodology for European Securitisations
• Master European Structured Finance Surveillance Methodology
• Swap Criteria For European Structured Finance Transactions
These can be found on dbrs.com under Methodologies. For a more detailed discussion of sovereign risk impact on Structured Finance ratings, please refer to DBRS commentary “The Effect of Sovereign Risk on Securitisations in the Euro Area”.
This credit rating has been issued outside the European Union (EU) and may be used for regulatory purposes by financial institutions in the EU.
Ratings
Banco Comercial Português S.A. Covered Bonds (Obrigações Hipotecárias - Mortgages)
Banco Espírito Santo, S.A. Covered Bonds Programme
Banco de Investimento Imobiliário S.A. Covered Bonds (Obrigações Hipotecárias - Mortgages)
Bank of Ireland Mortgage Bank Covered Bonds (ACS - Mortgages)
Caixa Economica Montepio Geral Covered Bonds (Obrigações Hipotecárias - Mortgages - CPT)
Santander Totta S.A. Covered Bonds (Obrigações Cobertas - Mortgages)
ALL MORNINGSTAR DBRS RATINGS ARE SUBJECT TO DISCLAIMERS AND CERTAIN LIMITATIONS. PLEASE READ THESE DISCLAIMERS AND LIMITATIONS AND ADDITIONAL INFORMATION REGARDING MORNINGSTAR DBRS RATINGS, INCLUDING DEFINITIONS, POLICIES, RATING SCALES AND METHODOLOGIES.
Download This Press Release
Related Documents
Methodology Used:
Other:
Contacts
Claire Mezzanotte
Group Managing Director, Global Head of Structured Finance Ratings - Credit Ratings Leadership
+(1) 212 806 3272
claire.mezzanotte@morningstar.com