The Netherlands

Fitch yesterday (Wednesday) revised the outlook on NIBC Bank from stable to negative, while affirming the Dutch bank’s long term issuer rating.

ING sized the first 10 year covered bond since the market burst back into life last week at Eu1.25bn this (Tuesday) morning. The deal is also the first new benchmark under the Netherlands’ covered bond legislation.

Amid competing supply from two other covered bond issuers, ING has this (Monday) morning built a book exceeding Eu1bn for its first new jumbo in a year, with guidance yet to be fixed.

Plans by the Dutch Financial Markets Authority (AFM) to tighten mortgage lending regulation could aggravate loan level loss severities in outstanding Dutch residential mortgage-backed securities and covered bonds, warned Fitch today (Wednesday).

Moody’s yesterday (Thursday) downgraded Achmea Hypotheekbank’s covered bonds from Aaa to Aa2, and left them on review for further downgrade, as a result of a deterioration in the credit quality of the issuer after the covered bond rating was put on negative review on 22 January.

Fortis Bank Nederland’s inaugural government-guaranteed transaction this week, a Eu5bn three year deal priced on Tuesday, was deemed a roaring success by market participants.

The jumbo market looks set for a quiet four day week, despite syndicate officials saying that market conditions are favourable for issuance. The situation on the government-guaranteed market is hardly different, with Fortis the only borrower active today (Monday) and no other issues said to be in the immediate pipeline.

Standard & Poor’s yesterday (Thursday) put secured debt issued off ABN Amro’s Bouwfonds programme on CreditWatch developing, but said that the bank’s covered bond ratings were unchanged, after it was announced last week that both would be allocated to the ABN Amro businesses the Dutch state is acquiring.

Standard & Poor's yesterday cut the ratings of ING Groep NV and ING Verzekeringen NV from AA- to A+ , negative outlook. ING Bank's rating was also downgraded, from AA to AA-, negative outlook.

Banco Cooperativo Español on Wednesday priced a Eu1.4bn three year government-guaranteed deal, showing that despite the relentless pace of guaranteed issuance from Spain, the right name can still drum up plenty of investor interest.

The pace of government-guaranteed issuance picked up today (Wednesday), with an Austrian, a UK and possibly a German name joining in. Banks are said to be keen to complete deals ahead of the European Central Bank meeting tomorrow (Thursday).

Spanish and Dutch financial institutions are today (Tuesday) braving the government-guaranteed market after yesterday's turmoil. The two deals are coming wider than recent comparables, but are both understood to be going well.