(The following statement was released by the rating agency)
Feb 07 - Fitch Ratings has updated its criteria for analysing asset related risks of
commercial real estate loans that are used as collateral for covered bonds. The report replaces
the previous report "Criteria for the Analysis of Commercial Real Estate Loans Securing Covered
Bonds" dated 10 August 2012.
Fitch updates the criteria for the purpose of minor editorial changes and
clarifications such as additions to the criteria limitations section which
explain the instances where rating caps apply. The update will not have any
Cover pool features that are generally inconsistent with high rating categories
may be subject to rating caps. If certain risks factors relating to specific
borrowers or loans are identified and not mitigated (e.g. through asset
diversification or amortization), Fitch may not give credit to any proceeds from
the respective assets in high rating scenarios.
In addition, Fitch has changed the borrower concentration limit to 0.5% of the
total cover pool above which the agency expects to receive additional
information such as detailed rental information. This limit is now in line with
Fitch's application of additional stresses to non-SPC borrowers to address
obligor concentration risk.
The full list of data fields Fitch expects to receive for all cover pool assets
is included in the updated criteria report.
Link to Fitch Ratings' Report: Criteria for the Analysis of Commercial Real
Estate Loans Securing Covered Bonds