European covered bond downgrades accelerate
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).