Fitch wary on amended Polish covered bond law

By Bill Thornhill
16 Oct 2014

Fitch has issued a guarded opinion on recent changes to the Polish covered bond law that had been expected to improve issuance prospects. The amended law, which introduces pass-through structures and mandatory liquidity facilities, should have theoretically led to higher ratings. But the agency said the impact of the new regulation may in practice be more modest by not pushing ratings down.

Polish issuers and the Polish Mortgage Credit Foundation had hoped the new Polish Covered Bond Act that comes into force in January 2015 would breathe life in the country’s moribund covered bond market.

In April this year Polish market participants said they expected the legal overhaul would ...

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