Standard & Poor’s upgraded Bankinter cédulas hipocarias from A- to A yesterday (Wednesday) because the asset-liability mismatch risk in the programme decreased following an early redemption of some of its mortgage covered bonds.

In May Bankinter redeemed Eu1.1bn of notes due to mature in 2015, and issued Eu1.3bn of cédulas hipotecarias due 2023. S&P said that this reduced the asset-liability mismatch risk in the programme to below 15%, which the rating agency considers “low”.

This increased by one notch the maximum potential uplift above the issuer credit rating that the covered bonds can achieve.

S&P rates Bankinter BB, on negative outlook. The outlook on the cédulas is negative.