DBRS yesterday (Wednesday) placed on negative review covered bonds issued by Portugal’s Caixa Económica Montepio Geral because the rating agency downgraded the sovereign’s rating on Monday.

DBRS on Monday cut Portugal from BBB to BBB (low), on negative trend. It rates covered bonds issued by Montepio A (low), but placed these under review with negative implications, alongside Portuguese ABS, RMBS and SME CLO structured finance transactions.

“DBRS will undertake a review to determine the impact of the sovereign downgrade on the transaction and will promptly publish updated rating actions that may either result in a confirmation or a downgrade,” said the rating agency.