Covered Bonds

Moody’s on Friday changed the outlook from stable to negative on Caisse Centrale du Crédit Immobilier de France (3CIF), which is rated A1.

Moody's today (Monday) cut the rating of Dexia Sabadell by three notches, from A2 to Baa2, and changed the outlook from stable to negative.

Standard & Poor’s on Friday extended the deadline for comments on its proposed new covered bond rating methodology. Market participants have until 27 March to provide feedback, instead of 13 March.

Moody’s on Friday downgraded HSH Nordbank’s rating from Aa3 to A1, and placed the rating on negative outlook.

The US Covered Bonds Council met on Friday, but the development of covered bonds in the US is being held up on continued uncertainty over the Federal Deposit Insurance Corporation’s plans.

ING is set to price the first five year Dutch guaranteed transaction later today (Friday) after the maximum maturity under the country’s scheme was extended. Its volume also overshadows the sizes achieved by Austrian issuers that have been active in the tenor.

Banco Pastor is in the market today (Friday) with a three year Eu1bn no-grow government guaranteed issue that could put the latest Spanish deal 5bp inside where La Caixa opened issuance in late January.

Deutsche Postbank’s long term issuer default rating was downgraded by Fitch yesterday (Thursday) from A to A-, with a stable outlook, after the bank announced a preliminary loss of Eu821m for 2008.

Fears in the Pfandbrief market that the SoFFin guarantee scheme would be extended from three to five years now appear certain to be realised, after the German cabinet’s approval of the amendment to the Financial Market Stabilisation Act on Tuesday. The way in which one issuer’s aspirations to execute a three year jumbo were stifled recently suggests that market participants are right to be disappointed.

Bankinter yesterday (Wednesday) printed its debut government guaranteed deal, soaking up investor demand left unsatisfied by preceding Spanish transactions in the guaranteed market. Its oversubscribed book bodes well for Banco Pastor, which today (Thursday) announced that it will follow with a government-backed benchmark.

Fitch does not expect the Banking Act 2009 to affect the rating of UK structured finance and covered bond programmes, because of the commitment of the UK authorities to ensure that the markets are not disrupted.