UK

Bank of Scotland has launched the first issue off a new £15bn mortgage covered bond programme for its Intelligent Finance (IF) division, which uses a full pass-through structure.

Fitch yesterday (Thursday) affirmed Clydesdale’s issuer default rating at AA-, stable outlook, but placed the bank’s individual rating on negative review.

Commerzbank will today (Friday) price the first unguaranteed senior unsecured bond from a German issuer since the collapse of Lehman Brothers.

Fitch yesterday (Wednesday) said that the AA rating of Barclays Bank is no longer justifiable given the risks and earnings volatility the bank is exposed to via Barclays Capital.

Principality Building Society has set up a covered bond programme.

The rating agencies have delivered their verdicts on the merger between Britannia Building Society and The Co-operative Bank, and the outlook for the enlarged mutual.

Fitch on Friday downgraded the rating of Lloyds TSB Bank from AA+ to AA-. The long term ratings of HBOS and Bank of Scotland were also cut, from AA to AA-.

Fitch on Friday changed the outlook on its AA rating of HSBC Bank from stable to negative.

Newcastle Building Society has executed its first issue off a newly established Eu2bn covered bond programme.

HM Treasury has yet to decide whether or not covered bonds will form part of a planned scheme to guarantee asset-backed securities issuance announced by the UK government today (Monday), The Cover understands.

Standard & Poor’s yesterday (Wednesday) downgraded Lloyds TSB Bank from AA to AA-. It affirmed the AA- and A+ rating of Bank of Scotland and HBOS, respectively, but gave them a negative outlook.

Norwich & Peterborough Building Society has executed what is thought to be the first issue off a Eu7bn covered bond programme, a £510m (Eu565m) December 2012 floating rate note. [updated]