Fitch method too strict, Crédit Agricole research imples

Fitch’s covered bond rating methodology, which was altered this week, may be construed as too harsh. Fitch favours systemically important banks, but Crédit Agricole notes that this is to the exclusion of smaller banks that issue covered bonds which have also benefitted from public support. Fitch favours six countries that issue a lot of covered bonds, but the analysts argue this number is too low.