Fitch downgrades Montepio covereds amid poor mortgage outlook

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By David Freitas
03 Jul 2020

Fitch has downgraded its covered bond ratings for Banco Montepio amid a deterioration in the outlook for residential mortgage loans in Portugal, exacerbated by the impact of the coronavirus pandemic.

The rating agency downgraded Montepio’s mortgage covered bonds (OH) by one notch to A and maintained its negative outlook on the the issuer.

The ratings action follows Fitch's decision to downgrade the Portuguese lender's long-term default rating by two notches to B-, on the back of concerns about ...

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