The Netherlands

SNS Bank and Aktia Real Estate Mortgage Bank have been in the market today (Wednesday), building books for new covered bond issues after the pricing of benchmarks for Dexia Kommunalbank Deutschland and Erste Bank yesterday (Tuesday).

Deals for Dexia Kommunalbank and Erste Group got the primary market off to a strong start this (Tuesday) morning, with both issues oversubscribed and executed swiftly. Further issuance is expected this week, with SNS Bank already sounding out a new issue.

SNS Bank has mandated lead managers for a new covered bond that is expected this week, and several other issuers are said to be candidates for issuance in the coming days.

Moody’s has lowered SNS Bank’s senior debt rating because of a significant worsening of the bank’s asset quality and as a result of high impairments largely stemming from investment management and project finance activities of its SNS Property Finance arm.

The triple-A ratings of ABN Amro covered bonds will not be affected by the demerger of the bank into two institutions, according to the main rating agencies.

Standard & Poor’s has withdrawn its ratings of SNS Bank’s covered bond programme at the issuer’s request, after affirming the ratings at AAA and assigning them a negative outlook.

Standard & Poor’s downgraded the first covered bond programme under its revised rating methodology yesterday (Thursday), cutting NIBC’s covered bonds from AAA to AA. The rating was withdrawn at NIBC’s request. Meanwhile S&P affirmed GCE Covered Bonds’ and Société Générale SCF’s programmes at AAA.

Three issuers announced mandates this (Monday) morning, ensuring that the pipeline remains bulging even after three issuers closed books on new issues, as the pace of supply showed no sign of relenting in the second week of the new year.

Standard & Poor’s has taken the first actions under its new covered bond rating methodology, affirming six programmes’ AAA ratings.

Standard & Poor’s has revised its outlook for Fortis Bank (Nederland) from developing to positive because of greater certainty that it will be merged with the Dutch state-owned portion of ABN Amro Bank within two years.

Fitch on 22 December downgraded SNS Bank’s long term issuer rating from A to A- and placed it on rating watch negative because of the bank’s large exposure to stressed property finance sectors, and US and Spanish real estate markets in particular. The issuer has to take remedial action with respect to its covered bond programme because of the downgrade.

Fitch has affirmed ING Bank’s mortgage-backed covered bonds at AAA after the issuer amended its programme to provide for a “supplemental liquidity reserve amount”.