Fitch maintains negative rating on BoC covered bonds

Fitch Ratings has maintained the 'B' rating of the mortgage covered bonds issued by Bank of Cyprus on Rating Watch Negative (RWN), although the covered bond programme benefits from an IDR uplift of '1'.

According to Fitch, the RWN reflects the uncertainty around the direction of the bank’s IDR and the impact of the current difficult economic environment on the performance of the residential mortgage portfolio.  The Agency has also revised the Outlooks on four Greek covered bond programmes to Positive and another to Stable. The ratings of the five covered bonds programmes have also been affirmed.  

The rating of the mortgage-covered bonds issued by Alpha Bank A.E. (Alpha, B-/Stable/B) has been affirmed at ‘B’ and the Outlook has been revised to Positive from Negative.  The rating of the mortgage covered bonds issued by Eurobank Ergasias S.A. (Eurobank, B-/Stable/B) has been affirmed at ‘B’ and the Outlook has been revised to Positive from Negative.   The rating of the mortgage-covered bonds Programme I issued by National Bank of Greece S.A. (NBG, B-/Stable/B) has been affirmed at ‘B+’ and the Outlook has been revised to Stable from Negative.  The rating of the mortgage covered bonds issued by Piraeus Bank S:A. (Piraeus, B-/Stable/B) has been affirmed at ‘B’ and the Outlook has been revised to Positive from Negative.

Source: Financial Mirror