Fitch rates UBS Switzerland bond AAA

Fitch Ratings said it assigned UBS Switzerland AG's first mortgage covered bond an expected AAA rating. The agency assumed for its analysis that the first issuance will be a dual-tranche denominated in Swiss francs, paying a fixed rate with a three-year and 10-year maturity, both with a one-year soft-bullet feature.

The bonds will be guaranteed by UBS Hypotheken Schweiz AG, a special-purpose vehicle to which the cover assets will be assigned for security purposes.

The rating is based on the bank’s A+ issuer default rating, a resolution uplift of two notches, a payment continuity uplift of six notches and a recovery uplift of two notches, Fitch explained.

The outlook is stable.

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