Europe

Compagnie de Financement Foncier yesterday (Tuesday) sold a $1.8bn (Eu1.4bn) two year dual tranche 144A issue, its second US targeted dollar benchmark covered bond this year and the first to be launched off a new US MTN programme.

Fitch yesterday (Tuesday) downgraded the long term rating of Banco Popular Español from AA- to A, on stable outlook, because of deterioration in the bank’s asset quality and its effect on operating profitability.

Fitch yesterday (Monday) downgraded the long term rating of HSH Nordbank from A to A-, and left it on negative review, in expectation of a reduction in ownership by Hamburg and Schleswig-Holstein.

Standard & Poor’s has affirmed at AAA mortgage-backed covered bonds issued from Danske Bank’s domestic cover pool and removed them from negative review following the application of its revised rating criteria.

WestLB will drop its DBRS and Standard & Poor’s ratings and replace them with Fitch ratings, it announced yesterday (Thursday).

Landesbank Baden-Württemberg priced a $500m three year benchmark covered bond in the middle of its 70bp over mid-swaps area guidance yesterday (Thursday). Some market participants questioned the economics of the transaction, but LBBW’s head of funding stressed the strategic value of the Eurodollar issue.

Landesbank Baden-Württemberg is launching the first Eurodollar benchmark covered bond in more than two-and-a-half years, targeting a three year public sector-backed issue of at least $500m (Eu397m), with European and Asian accounts the main audience.

Moody’s has downgraded Marfin Egnatia Bank from Baa2 to Baa3 because of a weakened ability of its parent to provide support if required. However, the ratings are on positive outlook.

A Eu1.25bn 15 year Crédit Agricole issue yesterday (Monday) provided the market with the strong transaction that it needed following the end of the European Central Bank’s covered bond purchase programme (CBPP), a syndicate official at one of the leads told The Cover.