France

Fitch on Friday affirmed the AAA rating of Dexia Municipal Agency's obligations foncières despite a downgrade of its parent, Dexia Crédit Local, from AA- to A+.

Compagnie de Financement Foncier tapped a Sfr500m March 2013 deal for Sfr250m at plus 90bp via Basler Kantonalbank and Zürcher Kantonalbank on Wednesday, taking the issue to Sfr750m (Eu496m).

Better than expected first-quarter bank results and unguaranteed bond supply from lower rated financial institutions gave market participants in Europe and the US hope that the market is on the road to recovery this week.

Société Générale SCF is increasing its recent Eu1.25bn 10 year public sector obligations foncières issue by Eu1bn after encountering strong real money demand for the tap. Meanwhile a rare, if modest and privately placed, dollar issue was executed yesterday (Wednesday).

Fitch last week took rating actions on several major banks following a review of the capacity of high grade sovereigns to support their largest and most systemically important commercial banks. The agency upgraded two German Pfandbrief issuers, but cut the ratings of four entities in the Dexia group.

Caisse de Refinancement de l’Habitat increased the Eu1bn 10 year issue it launched in late March by more than expected yesterday (Wednesday) afternoon to accommodate demand from end investors.

Landesbank Baden-Württemberg yesterday (Tuesday) tapped its Eu1bn February 2014 Pfandbrief, and Caisse de Refinancement de l’Habitat is today (Wednesday) also taking advantage of a “perfect week” to increase the 10 year Eu1bn issue it priced on 25 March.

Caisse Centrale du Crédit Immobilier de France (3CIF) was cut from A+ to A by Standard & Poor’s yesterday (Wednesday) because of a decline in the quality of its loan portfolio and falling profitability.

Compagnie de Financement Foncier tapped its 2.5% March 2013 Swiss franc bond issue for Sfr150m yesterday (Tuesday) at mid-swaps plus 95bp, 15bp tighter than the launch spread on 10 February.

Caisse de Refinancement de l’Habitat yesterday (Wednesday) returned to the jumbo market with a 10 year covered bond priced at the same level as last week’s Société Générale SCF obligations foncières in the same maturity. This achievement was hailed by market participants, although the issuer was not completely satisfied.

Update: Caisse de Refinancement de l’Habitat hopes to price a new Eu1bn 10 year jumbo covered bond shortly, having already attracted orders of more than Eu1bn after opening books at 1230 CET today (Wednesday).

The ever dwindling appetite for Spanish government-guaranteed paper was clearly evident yesterday (Monday) as Cajamar just about got a Eu1bn deal over the line, but another mandate is already out.