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Global Covered Bond Insights For Q3 2019 Published

Global Covered Bond Insights For Q3 2019 Published


  • The reports published today highlight developments in the global covered bond market during third-quarter 2019, including new programs we've rated.
  • European covered bond issuance had a strong first part of 2019, supported by record low interest rates, among other developments.
  • During third quarter, we raised our credit ratings on one covered bond program and affirmed our credit ratings on 14 programs.

MADRID (S&P Global Ratings) Sept. 10, 2019--S&P Global Ratings today published a commentary providing an overview on recent developments in the global covered bond markets and rating trends (see "Global Covered Bond Insights Q3 2019").

European covered bond issuance had a strong first part of 2019, supported by record low interest rates, the implementation of a common EU legislative framework, increasing interest from new legislations, and the growth of green and sustainable covered bonds.

During third quarter, we assigned our rating to AXA Home Loan SFH's covered bond program, and we raised our ratings on one Spanish covered bond program, following the issuer's commitment to maintain a minimum level of overcollateralization commensurate with the maximum potential notches of collateral-based uplift.

Following our review, our ratings on the covered bond programs that could potentially be affected by our criteria for analyzing counterparty risk in structured finance transactions are no longer under criteria observation. We have affirmed the ratings on these covered bonds.

Issuance to date this year has increased compared with previous years, but favorable market conditions could push financial institutions to issue more junior instruments in their capital structure, and new central bank funding could also lower covered bond volumes. Therefore we expect year-end issuance to be aligned with 2018.

We also published a report today that lays out core characteristics and risk indicators that we regularly assess in our analysis (see "Global Covered Bond Characteristics And Rating Summary Q3 2019").

This report does not constitute a rating action.

The report is available to subscribers of RatingsDirect at If you are not a RatingsDirect subscriber, you may purchase a copy of the report by calling (1) 212-438-7280 or sending an e-mail to Ratings information can also be found on S&P Global Ratings' public website by using the Ratings search box located in the left column at Alternatively, call one of the following S&P Global Ratings numbers: Client Support Europe (44) 20-7176-7176; London Press Office (44) 20-7176-3605; Paris (33) 1-4420-6708; Frankfurt (49) 69-33-999-225; Stockholm (46) 8-440-5914; or Moscow (7) 495-783-4009.

Primary Credit Analysts:Antonio Farina, Madrid (34) 91-788-7226;
Marta Escutia, Madrid + 34 91 788 7225;
Judit O Woelk, Frankfurt (49) 69-33-999-319;
Maria Luisa Gomez Grande, Madrid (34) 91-788-7208;
Analytical Manager:Barbara Florian, Milan (39) 02-72111-265;

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