RPT-Fitch updates Norwegian residential mortgage loss & cash flow assumptions
(Repeat for additional subscribers)
March 10 (Reuters) - (The following statement was released by the rating agency
Fitch Ratings has updated its assumptions for analysing Norwegian residential mortgage pools. The criteria assumptions will be used for rating new and existing covered bond programmes backed by Norwegian residential mortgages. The updated criteria assumptions do not have any impact on the existing covered bonds programmes backed by Norwegian mortgage pools rated by Fitch.
Since the last criteria update in April 2013, the Norwegian housing market reached a new peak in mid-2013, but prices have subsequently decreased and currently stand at similar to 2012 levels. Fitch's current to trough base house price decline (HPD) assumption remains at 5%. However, the agency has revised its peak-to-trough HPD assumptions to 9% in a 'B' rating scenario and 52% in a 'AAA' rating scenario to reflect the new market developments.
Fitch has not changed its other mortgage loss and cash flow assumptions for Norway. Mortgage loan performance continues to be strong and the macro-economic environment outlook for Norway remains positive.
The full report, entitled 'EMEA Criteria Addendum - Norway - Mortgage Loss and Cash Flow Assumptions', is available at www.fitchratings.com.
Link to Fitch Ratings' Report: EMEA Criteria Addendum - Norway