Italian segregation satisfies Fitch, but not BoI role

Fitch Ratings has delivered its verdict on the legal framework for Italian covered bonds (obbligazioni bancarie garantite) in a research report published today. The rating agency is satisfied by the cover asset segregation in one of the two issuance frameworks, with further information awaited on the second. However, there are concerns at the lack of definition of the Bank of Italy’s (BoI) role as regulator.