Sparebanken Vest has dropped Fitch from rating its residential mortgage backed covered bond programme, with the rating agency having affirmed and withdrawn its AAA rating yesterday (Wednesday).

Sparebanken Vest Boligkreditt’s covered bonds had hitherto been rated Fitch and Moody’s, which also has had a triple-A rating. Fitch rates Sparebanken Vest A- and Moody’s, A2, with the two ratings on stable outlook.

The Norwegian bank said on Tuesday of last week (6 August) that it would be dropping Fitch.

“As part of the Sparebanken Vest Group’s efforts to increase efficiency, simplify operations and reduce costs, Sparebanken Vest Boligkreditt has concluded that [a] rating from Moody’s is sufficient for residential mortgage covered bonds issued by the company,” it said. “One rating is also in line with most other covered bonds companies in Norway.

“Sparebanken Vest Boligkreditt has therefore requested for withdrawal of the ratings by Fitch Ratings of covered bonds issued under the EUR 8bn EMTN Covered Bonds Programme.”

Fitch said yesterday that the rating has been withdrawn because it will no longer have sufficient information to maintain the rating as the issuer has chosen to stop participating in the rating process.