The Netherlands

Standard & Poor’s downgraded SNS Bank from A to A- on Friday because it expects the profitability of the Dutch bank to remain relatively weak.

From EuroWeek: Delta Lloyd reopened the Dutch mortgage securitisation market this week with the successful placement of its Eu904.5m Arena 2009-1 issue. ABN Amro and Fortis also announced they will be redeeming residential mortgage securitisations they had previously declined to call at their step-up dates.

Moody’s has revised its approach to modelling set-off risk in relation to residential mortgages in Dutch covered bond programmes, which may affect the rating of one programme that is already on review for downgrade, the agency announced today (Monday).

Westdeutsche Immobilienbank has wrapped up a Eu500m three and a half year issue this (Monday) morning and Ibercaja is soft-sounding for a similarly sized five year deal.

EBS Mortgage Finance and OP Mortgage Bank are sounding out investors today (Wednesday) for what are said to be three and five year deals, respectively. Fortis Bank Nederland’s planned debut is also being discussed.

Achmea Hypotheekbank has told Moody’s that it plans to implement enhancements to its mortgage covered bond programme by April 2010 and will present its proposed changes to the rating agency within six weeks.

Moody’s yesterday (Thursday) placed SNS Bank’s long term rating on review for possible downgrade. It affirmed NIBC’s ratings, but revised the outlook on Fortis Bank Nederland’s rating from positive to negative.

SNS Bank told The Cover that it was unfazed by DSB Bank’s failure and Eurohypo’s wider than expected pricing on Monday when it launched its first benchmark covered bond yesterday (Tuesday), a Eu1bn six year deal executed around two years after its programme was established.

SNS Bank has closed the books for its debut benchmark covered bond having attracted around Eu1.5bn of orders for a six year issue. The deal will be priced in the middle of guidance this (Tuesday) afternoon, but the final size had yet to be confirmed by the time The Cover went to press.

Eurohypo launched a Eu1bn long five year mortgage-backed Pfandbrief this (Monday) morning that will be priced at 25bp over mid-swaps, the middle of guidance that was set wider than initial levels investors were presented with on Friday. Only one issuer is widely expected to follow it into the primary market this week.

SNS Bank could make its public debut next week following the conclusion of a roadshow that the issuer embarked on this Wednesday, an official at the bank told The Cover.

NIBC has put on hold its plans to issue a debut public covered bond after the Dutch central bank took over DSB Bank.