S&P turns UniCredit bond view to positive

S&P said it changed the outlook for UniCredit SpA’s Italian mortgage-covered bonds to positive from stable and affirmed the AA- ratings on the bonds.

The outlook revision and affirmation reflect the agency’s recent outlook change to positive and rating affirmation on Italy’s sovereign, S&P said.

“Under our sovereign risk criteria, UniCredit's mortgage covered bonds can be rated up to five notches above the sovereign rating if the covered bonds have sufficient overcollateralization to withstand a sovereign default. As UniCredit's covered bond program meets these conditions and considering the current foreign currency rating on Italy, the covered bonds can achieve a maximum potential rating of aa-,” the agency said in a press release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.