The Netherlands

Standard & Poor’s today (Friday) downgraded the long term rating of ABN Amro from A+ to A, on stable outlook, in advance of the bank’s merger with Fortis Bank Nederland on 1 July. Fitch on Wednesday said that it expects to affirm ABN Amro’s rating on completion of the merger, but cut the bank's individual rating.

ABN Amro Bank yesterday (Monday) priced the biggest 10 year benchmark since September 2009, achieving the strong comeback that the issuer told The Cover it had been targeting. The deal comes ahead of its merger with Fortis Bank Nederland.

ABN Amro Bank and Landesbank Baden-Württemberg this (Monday) morning followed through with new covered bonds announced last Friday, with a 10 year deal for the former representing the first Dutch benchmark since March.

At least two banks have mandated for covered bonds that are expected next week, after supply this week of Eu10.7bn.

Moody’s affirmed the Aa2 rating of Achmea Hypotheekbank’s mortgage covered bonds yesterday (Tuesday) after the Dutch issuer restructured some aspects of its programme.

Standard & Poor’s has revised the outlook on SNS Bank from stable to negative because it expects the Dutch group to continue to be pressured on bank earnings and asset quality.

Berlin-Hannoversche Hypothekenbank will today (Wednesday) price a Eu600m six year Pfandbrief at the tight end of guidance. It takes past Eu6bn the amount of Eu500m-plus issues to have hit the market this week, coming after benchmarks for issuers such as ING Bank and Crédit Agricole.

All four institutions that had indicated that they would come to market this week opened their order books today (Tuesday), but had little trouble achieving price and size targets in the middle of or better than those being aimed for.

Swedbank Mortgage will today (Monday) price a seven year covered bond at the tight end of guidance of the 60bp over mid-swaps area. The deal marks the beginning of what looks set to be a busy week in the covered bond market as other issuers have rushed to secure their place in a line-up that is already four institutions deep.

Kees Westermann has left Clifford Chance for Linklaters, where he will head a new structured finance practice for the firm in Amsterdam that will take in covered bonds.

SNS Bank was in no rush to launch a Eu1bn seven year deal that was priced on Wednesday, an official at the Dutch bank told The Cover, and the extra time it gave investors paved the way for a successful outcome.

SNS Bank opted for a Eu1bn size for a seven year covered bond launched yesterday (Wednesday) to ensure a good performance, said a syndicate official at one of its leads, although the size and quality of the order book would have allowed for a larger deal. Meanwhile, Aktia Real Estate Mortgage Bank hit the tight end of guidance but nevertheless paid a premium for the issue’s Eu500m size.