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Takarek Mortgage Bank Co. PLC Hungarian Mortgage Covered Bond Ratings Placed On CreditWatch Positive

Overview

  • Our assessment of the issuer creditworthiness has improved, resulting in a change in the required credit enhancement for each notch of collateral-based uplift.
  • As a result, the covered bonds could be eligible for collateral-based uplift above the jurisdiction-supported rating level.
  • We consequently placed on CreditWatch positive our 'BBB' ratings on Takarek Mortgage Bank Co. PLC's Hungarian mortgage covered bond program and related issuances.
  • We plan to resolve the CreditWatch placement following completion of our analysis of the latest available cover pool information.

MADRID (S&P Global Ratings) Jan. 26, 2023--S&P Global Ratings today placed on CreditWatch positive its 'BBB' credit ratings on Takarek Mortgage Bank Co. PLC's Hungarian mortgage covered bond program and related issuances.

The CreditWatch positive placement reflects our view that following the improvement in our assessment of the issuer's creditworthiness, the covered bonds could be eligible for collateral-based uplift above the current rating which reflects the covered bonds' jurisdiction-supported rating level (JRL) of 'bbb'. This is because the determination of the required credit enhancement for each notch of collateral-based uplift has changed.

Consequently, we placed the covered bond ratings on CreditWatch positive and will reassess the cover pool's credit quality to determine whether the available credit enhancement is commensurate with any collateral-based uplift above the JRL. We plan to resolve the CreditWatch placement following completion of our analysis of the latest available cover pool information.

Environmental, social, and governance (ESG) credit factors for this change in credit rating/outlook and/or CreditWatch status: 

  • Governance structure
  • Transparency and reporting

Related Criteria

Related Research

Primary Credit Analyst:Natalie Swiderek, Madrid + 34 91 788 7223;
natalie.swiderek@spglobal.com
Secondary Contact:Adriano Rossi, Milan + 390272111251;
adriano.rossi@spglobal.com

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