Spain

The Cover understands that the update to the Spanish covered bond framework will finally be completed early in the new year, with a Royal Decree expected in January.

Rating actions: Moody’s yesterday (Wednesday) upgraded the ratings of Banco Espanol de Credito’s cédulas hipotecarias from Aa1 to Aaa. Meanwhile S&P downgraded two cédulas issuers.

Rating action: Fitch today (Wednesday) downgraded Banco Guipuzcoano’s outstanding cédulas hipotecarias from AAA to AA+. The outstanding covered bonds amount to Eu1bn.

Rating action: Fitch yesterday (Tuesday) assigned a AAA expected rating to Caja Murcia’s Eu160m December 2011 issue of cédulas hipotecarias. The rating agency is still waiting for final documentation before finalising the rating.

Standard & Poor’s downgrade of Natixis from AA-/A-1+ to A+/A-1 at the end of October does not affect the ratings on the notes issued in six Spanish structured covered bond transactions where it is liquidity provider, the rating agency said on Wednesday.

Rating action: Moody’s on Friday placed on review for possible downgrade the Aaa rating of Caja de Burgos’s cédulas hipotecarias.

Fitch Ratings on Tuesday said that it is updating its criteria for rating multi-issuer cédulas hipotecarias transactions and will release its new version in the first quarter of next year.

Banco Guipuzcoano is issuing a Eu300m three year fixed rate cédulas hipotecarias, which is believed to be its first stand-alone covered bond.

In brief: AyT Cédulas Cajas Global XX has been filed with the Comisión Nacional del Mercado de Valores.

Moody’s yesterday (Monday) affirmed the Aaa rating of Cédulas TDA 5, FTA.

Banque AIG has taken action to remedy the rating trigger breach it committed in the middle of October as Liquidity Facility Provider under the liquidity facility agreement in Cédulas TDA 5, FTA.

Société Générale increased Caisse de Refinancement de l’Habitat’s 4% April 2018 issue by Eu150m this (Friday) morning in a rare glimpse of real money-driven supply in the covered bond market. JP Morgan also privately placed two deals for Bancaja earlier this week.