Euro­pean cov­ered bond downgrades ac­cel­er­ate

The Pak Banker - - Front Page -


Global rat­ing agency Moody's says Euro­pean cov­ered bond downgrades have in­creased sharply over the last few months.,

Moody's in a new Spe­cial Com­ment pub­lished to­day said in the seven months since Fe­bru­ary 2012, the over­all level of cov­ered bond downgrades was sim­i­lar to the level seen in the four years be­fore this pe­riod (be­tween the start of the global fi­nan­cial cri­sis in 2008 and Fe­bru­ary 2012).

Global rat­ing agency Moody's has based this rat­ing mi­gra­tion study on the per­for­mance of Euro­pean cov­ered bonds out­stand­ing as of 1 Jan­uary 2008, and analy­ses these bonds' per­for­mance over the cri­sis.

The anal­y­sis is split be­tween cov­ered bond per­for­mance in coun­tries that have ex­pe­ri­enced a sov­er­eign down­grade dur­ing the cri­sis (down­graded sov­er­eigns), and those where the sov­er­eign has not ex­pe­ri­enced a down­grade over the cri­sis (sta­ble sov­er­eigns).

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