TEXT-Fitch Q4 Greek mortgage market index: RMBS outperforms market

Tue Feb 12, 2013 11:11am EST

Feb 12 - Link to Fitch Ratings' Report: Mortgage Market Index - Greece Q4
2012Feb 12 - The Greek mortgage pools that back the RMBS transactions rated by
Fitch Ratings show stronger performance than the overall Greek market, according
to Fitch's latest Q412 index report. The report is available at
www.fitchratings.com or by clicking the link above.

The portion of loans in arrears by more than three months including defaults
amongst Fitch-rated Greek transactions continues to rise and now stands at 8.7%
of current collateral balance, but remains over 9 percentage points lower than
the comparable figure quoted for the Greek market as a whole.

"The main reason behind the superior performance of the assets in RMBS
transactions is the high levels of repurchases and substitutions of
non-performing loans in certain deals," says Ibrahim Kamara, analyst in Fitch's
European RMBS team.

Fitch expects arrears to continue to rise in Greece throughout 2013, however the
rise will be moderated by further improved affordability as the even lower
Euribor levels feed into the mortgage rates payable.

Law 3986/2011 suspended auctions on properties worth less than EUR300,000 and
has recently been extended until the end of 2013. Fitch expects recoveries to
remain stagnant for the rest of 2013 with the Q4 index reporting annualised
recoveries as a percentage of net defaults at 1.4%.


Additional informaion is available at www.fitchratings.com.
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