Fitch affirmed Deutsche Postbank mortgage Pfandbriefe at AAA yesterday (Tuesday), a move that was expected after the issuer published a voluntary public OC commitment designed to retain the top level rating.

Fitch had placed the covered bonds’ rating on Rating Watch Negative on 24 March because the rating agency felt there was a risk the issuer would not provide a voluntary public overcollateralisation (OC) commitment within three weeks.

However, Postbank on Friday published a commitment to maintain OC of at least 15% for its mortgage Pfandbriefe, and Fitch yesterday therefore affirmed their rating at AAA. (See here for previous coverage of the OC commitment.)

The outlook is stable despite a negative outlook on the issuer rating as the covered bond rating incorporates a two notch uplift above the issuer.