The rating action follows the restructuring to a conditional pass-through (CPT) from a soft bullet liability structure on 29 September 2015. The Outlook is Stable.

The Outlook on the covered bond rating remains stable and reflects the slower pace of underlying asset quality deterioration, compared with 2013 trends, despite continued economic pressure.

The ‘B’ rating is based on BoC’s Long-term Issuer Default Rating (IDR) of ‘CCC’, an unchanged IDR uplift of 1, a revised Discontinuity Cap (D-Cap) of 8 notches (Minimal Discontinuity) from 0 (Full Discontinuity) and the 47% committed over collateralisation (OC).

Source: Famagusta Gazette