Fitch focused on peripheral programmes for 2012

Fitch expects ratings pressure next year to remain primarily on peripheral covered bond programmes, because of their vulnerability to sovereign rating action. Its overall outlook is less bearish than its rivals, however, and this may be borne out in how it wields its rating hatchet. The rating agency has 21% of covered bond ratings on rating watch negative, “the majority of which are based in peripheral Europe”. In stark contrast, Moody’s has placed 69% of the covered bond programmes it rates on negative outlook.