Banco Espirito's covered bonds assigned long-term '(P)Aaa' ratings - Moody's |
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Tue, 20 Nov 2007 13:59
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MUMBAI (Thomson Financial) - Moody's Investors Service said it has assigned a provisional long-term rating of '(P)Aaa' to the Series 1 mortgage covered bonds (Obrigacoes Hipotecarias) to be issued by Banco Espirito Santo, SA (BES).Moody's said the covered bond investors will benefit from the credit strength of 'Aa3'-rated BES and added it considers the transaction to be linked to the credit strength of BES, particularly from a default probability perspective.However, given the high rating of the sponsor bank and the credit quality of the cover pool, all things being equal, there may be a certain cushion for BES downgrade without affecting the 'Aaa' rating assigned to the covered bonds, Moody's said.The ratings address the expected loss posed to investors by the legal final maturity, Moody's said. It added the ratings address only the credit risks associated with the transaction.Other non-credit risks have not been addressed, but may have a significant effect on yield to investors, the rating agency said.TFN.newsdesk@thomson.comnpr/ranCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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Banco Espirito Santo's covered bonds assigned expected 'AAA' rating - Fitch 