The Netherlands

Achmea Hypotheekbank and NIBC are working on ways to address revisions to Standard & Poor’s rating methodology that put a cap of AA on issues involving A-2 rated derivative counterparties.

NIBC Bank has completed the transfer of German residential loans to its cover pool, which led Fitch to affirm the Dutch bank’s covered bonds at AAA today (Wednesday). [Story corrected to reflect completion of transfer.]

In brief: ING and Crédit Mutuel group members were downgraded this week, but the only covered bonds to have been cut so far this week have been those of Ukraine’s Bank Khreschatyk.

In brief: Fitch on Friday downgraded NIBC Bank NV’s rating from A- to BBB+. The outlook on the rating was moved from negative to stable.

The level of support banks can expect from their owners or governments was key to rating actions made by Fitch and Standard & Poor’s in the past 24 hours, as rating actions continued on covered bond-issuing members of groups that have been at the centre of the past fortnight’s emergency rescue packages.

Standard & Poor’s has affirmed its AAA rating of Achmea Hypotheekbank’s covered bond programme, which was recently revealed to have had failed its asset cover test five times in the past year and had ineligible loans in its cover pool.

The credit and (il)liquidity crisis struck Europe with a vengeance today (Monday), as the UK government took over Bradford & Bingley’s loan books and wholesale liabilities, Fortis was part nationalised by the Benelux governments, and Hypo Real Estate was forced to turn to the German government for funding.

An internal audit by Achmea Hypotheekbank has revealed that some of the mortgages transferred to its covered bond company do not comply with the eligibility criteria stated in the programme prospectus, the bank said yesterday (Thursday).

In brief: The Dutch central bank has approved ING Bank's covered bond programme, following the introduction of the country's covered bond law on 1 July. The CRD compliant covered bonds will now be eligible for preferential risk-weightings.

Achmea Hypotheekbank has underlined that it has rectified administrative errors in its covered bond programme that resulted in it failing its asset cover test (ACT) five times between February 2007 and July this year.

Achmea Hypotheekbank's Eu10bn covered bond programme failed its asset cover test (ACT) on five separate occasions between its first deal in February 2007 and July this year due to calculation errors. The bank has now acted to rectify the problem, which is believed to be the first time a covered bond has suffered such a lapse.

Banco Espírito Santo priced only its second covered this (Thursday) morning and the final size was enough to make it the largest covered bond in over a month. Those outside the deal said it was a pleasant surprise that two benchmarks could be priced during a bumpy week.