DBRS Releases Commentary on New Directive Likely to Bring Change to Spanish Cedulas

DBRS Ratings GmbH (DBRS) released a commentary titled “New Directive Likely to Bring Change to Spanish Cedulas”, an overview of the harmonisation of covered bond (CBs) frameworks outlined in the European Commission’s Covered Bond Directive (the Directive) and how it will affect Spain because of the particular structure of Spanish mortgage covered bonds (Cédulas Hipotecarias, CH) currently.

The new rules are intended to set an integrated European framework, with a common and strong definition of the financial product, improving homogeneity among national regimes and removing constraints for international investors. It also allows those CBs that align with the Directive to maintain the beneficial treatment within other regulations, such as the low-risk weight treatment under the Capital Requirements Regulation. In DBRS’s view, CHs will be one of the CB jurisdictions most affected by the changes brought on by the Directive given the legislative package in comparison to the current statutory framework. The commentary explores the likely implications of these changes.

Notes:
The commentary is available at www.dbrs.com.

For more information on this asset class or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.

DBRS Ratings GmbH, Sucursal en España
Calle del Pinar, 5
28006 Madrid
Spain

DBRS Ratings GmbH
Neue Mainzer Straße 75
60311 Frankfurt am Main Deutschland
Geschäftsführer: Detlef Scholz
Amtsgericht Frankfurt am Main, HRB 110259