Covered bond directive may strengthen Cédulas, giving cover for other reforms

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Covered bond directive may strengthen Cédulas, giving cover for other reforms

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Transposing the European Commission’s covered bond directive into Spanish Cédulas law should result in multi-notch Cédulas upgrades, Fitch said. This could help allay concerns about other legal reforms that will lower collateral protection, and help boost confidence that the impending overhaul of the Spanish legal framework can be executed deftly.

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