YESTERDAY Moody’s Investors Service downgraded Marfin Popular Bank covered bonds and put the Bank of Cyprus covered bonds on review for downgrade.
According to the statement released by the ratings agency yesterday:
- Covered bonds issued by Marfin Popular Bank (Marfin), backed by Cypriot residential mortgage loans (Marfin Cypriot Pool CB): downgraded to Ba3 on review for further downgrade; previously downgraded to Baa3 on 4 August 2011;
- Covered bonds issued by Marfin, backed by Greek residential mortgage loans (Marfin Greek Pool CB): downgraded to Ba3 on review for further downgrade; previously downgraded to Baa3 on 4 August 2011;
- Covered bonds issued by Bank of Cyprus Public Company Limited (BoC), backed by Greek residential mortgage loans (BoC Greek Pool CB): Baa3 placed on review for downgrade; previously downgraded to Baa3 on 4 August 2011.
In its statement, Moody’s said that: “Today’s rating action on the covered bonds is prompted by Moody’s downgrade of Cyprus’ sovereign debt and associated rating actions on Cypriot issuers of covered bonds”.
On 4 November, Moody’s downgraded Cyprus’s sovereign debt ratings by two notches to Baa3 on review for further downgrade.
On 8 November, Moody’s downgraded Marfin’s senior unsecured rating by three notches to B2 on review for further downgrade and BoC’s by one notch to Ba2 on review for further downgrade.
Further reading
Moody’s takes rating actions on covered bonds of Cypriot issuers (subscription)