Portugal

Fitch Ratings delivered an optimistic assessment of the performance of the leading Portugese banks in the first half of 2007. The report, published on Friday, expects the banks to maintain this strong performance despite recent difficult market conditions.

Millennium BCP has finally priced its Eu1bn seven year Portuguese covered bond at 11bp over mid-swaps, the middle of spread guidance.

Millennium BCP will close the books for its Eu1bn seven year issue at the end of today (Tuesday) and price it tomorrow after what is being seen as a slow bookbuilding process.

Millennium BCP’s latest covered bond looked in good shape this morning given that the Portuguese bank has limited the size of its seven year issue to Eu1bn.

Millennium BCP will be reminding investors of Portugal’s recently introduced covered bond legislation and the country’s modest house price growth when it embarks on a roadshow next week ahead of a new issue.