The amortisation of Eu300m of cédulas hipotecarias issued by Bancaja (now Bankia) will not have an immediate impact on the rating of Cédulas TDA 18, said Fitch yesterday (Monday), because its rating is driven by a weakest link analysis.

The Cédulas TDA 18 are rated AAsf, on Rating Watch negative, while Bankia is BBB+.

Fitch acknowledged that the amortisation of Bankia’s share in the transaction on 9 April increases the concentration of BB+ Banco CAM to 34% and said it will analyse this exposure and determine a rating cap applicable to the transaction.

However, the rating agency does not expect the cap to be lower than the rating resulting from the transaction’s exposure to BB- Banco de Valencia. Banco de Valencia has said it will maintain a 99% minimum overcollateralization level, according to Fitch.

The RatingWatch negative on the transaction will be resolved in April after cover pool data has been reconciled, said Fitch.