Portuguese upgrade shields covered bonds from bad BES news

By Bill Thornhill
31 Jul 2014

Moody’s upgrade of Portugal bodes well for prospective covered bond upgrades and should help to limit contagion related to the troubled Portuguese lender, Banco Espírito Santo, said bankers.

On Friday last week Moody's upgraded Portugalto Ba1 from Ba2 and stated that it did not expect BES to have a material impact on the government's balance sheet. As a consequence the sovereign rating ceiling was raised from Baa1 to A3. As only ...

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