Cédulas come under ratings knife as downgrades mount
Public sector backed cédulas became the latest victim of sweeping rating cuts on Thursday as Moody’s took negative action on 10 programmes after cutting the Spanish sovereign on Monday. Though secondary spreads have held, there are regulatory implications to the downgrades, and the investor base could shrink as bonds fall below triple-A.
The cuts bring the total number of negative rating actions taken on covered bonds in the last six weeks to around 40, according to Deutsche Bank analysts.
Moodys cut eight Spanish public sector backed covered bond programmes on Thursday, and placed a further two on review for downgrade. The
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