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
- General Criteria: Environmental, Social, And Governance Principles In Credit Ratings, Oct. 10, 2021
- Criteria | Structured Finance | General: Global Framework For Payment Structure And Cash Flow Analysis Of Structured Finance Securities, Dec. 22, 2020
- Criteria | Structured Finance | General: Counterparty Risk Framework: Methodology And Assumptions, March 8, 2019
- Criteria | Structured Finance | General: Incorporating Sovereign Risk In Rating Structured Finance Securities: Methodology And Assumptions, Jan. 30, 2019
- Criteria | Structured Finance | RMBS: Global Methodology And Assumptions: Assessing Pools Of Residential Loans, Jan. 25, 2019
- Legal Criteria: Structured Finance: Asset Isolation And Special-Purpose Entity Methodology, March 29, 2017
- Criteria | Structured Finance | Covered Bonds: Covered Bond Ratings Framework: Methodology And Assumptions, June 30, 2015
- Criteria | Structured Finance | Covered Bonds: Methodology And Assumptions: Analyzing European Commercial Real Estate Collateral In European Covered Bonds, March 31, 2015
- Criteria | Structured Finance | Covered Bonds: Covered Bonds Criteria, Dec. 9, 2014
- Criteria | Structured Finance | Covered Bonds: Methodology And Assumptions For Assessing Portfolios Of International Public Sector And Other Debt Obligations Backing Covered Bonds And Structured Finance Securities, Dec. 9, 2014
- General Criteria: Principles Of Credit Ratings, Feb. 16, 2011
Related Research
- MTB Magyar Takarékszövetkezeti Bank Upgraded To 'BB+' From 'BB' On Further Integration Into MKB Group; Outlook Positive, Dec. 19, 2022
- Covered Bonds Outlook 2023: Sailing Through Choppy Waters, Dec. 6, 2022
- European Covered Bonds Reach Harmonization Milestone As The Journey Continues, July 12, 2022
- ESG Credit Indicator Report Card: Covered Bonds, April 7, 2022
- S&P Global Ratings Definitions, Nov. 10, 2021
- Glossary Of Covered Bond Terms, April 27, 2018
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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