DBRS Morningstar Publishes “ECJ Ruling on IRPH Unlikely to Impair Spanish RMBS Performance” Commentary

DBRS Morningstar published a commentary titled “ECJ Ruling on IRPH Unlikely to Impair Spanish RMBS Performance”, which focuses on the European Court of Justice’s (ECJ) ruling on mortgages linked to the Índice de Referencia de Préstamos Hipotecarios (IRPH) index and the potential impact on Spanish RMBS.

Key highlights from DBRS Morningstar’s commentary include:

-- The ECJ ruling allows for the substitution of IRPH with another reference rate, likely to lead to reduced excess spread in affected RMBS transactions.
-- DBRS Morningstar currently rates seven Spanish RMBS transactions where exposure to IRPH is considered to be material.
-- Rating actions are not expected, although the exact impact will depend on the outcome of future court cases, alternative arrangements agreed between banks and consumers, and the presence of structural mitigants.

The commentary is available at www.dbrsmorningstar.com.

For more information on the commentary, visit www.dbrsmorningstar.com or contact us at [email protected].

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