(Repeat for additional subscribers)
April 16 (The following statement was released by the rating agency)
Fitch Ratings has affirmed Belfius Bank SA/NV's (A-/Negative) mortgage cover pool
pandbrieven at 'AAA' with Negative Outlook.
KEY RATING DRIVERS
The affirmation follows a revision of the breakeven overcollateralisation (OC)
for the 'AAA' rating to 26% from 25.5%, following the issuance of further
series, including unrated N-Bonds ranking pari-passu with the outstanding
pandbrieven series, and all backed by the EUR5.06bn Belgian residential mortgage
loan cover pool. This compares with the 34.4% of nominal OC which Fitch relies
on in it analysis, corresponding to the lowest nominal OC over the last 12
months. Fitch's breakeven OC for the rating will be affected, among other
things, by changes in the assets profile in relation to the pandbrieven, which
will change over time.
The rating is further based on the Long-term Issuer Default Rating (IDR) of
Belfius Bank SA/NV and an unchanged Discontinuity-Cap (D-Cap) of 4 (moderate).
The Negative Outlook is driven by the Negative Outlook on Belfius Bank SA/NV's
IDR and the IDR uplift of 1 assigned to the programme (see 'Fitch Affirms
Belgian Pandbrieven on Criteria Amendments; Revises Belfius' Pandbrieven
Outlook', dated 28 March 2014) and reflect Fitch's view that a potential
downgrade of the bank's IDR may not be entirely compensated by the IDR uplift of
The Pandbrieven's 'AAA' rating is vulnerable to downgrade if any of the
following occurs: (i) Belfius Bank's IDR was downgraded by two notches to 'BBB';
(ii) the current D-Cap of 4 (moderate) is revised down to 2 (high) or lower;
(iii) the OC drops below Fitch's breakeven level of 26% for the 'AAA' rating.