Moody’s upgraded mortgage-backed covered bonds of five Portuguese issuers today (Friday) following its raising of the country’s bond ceiling and base TPI for Portuguese mortgage-backed covered bonds.

Banco Santander Totta and Banco de Investimento Imobiliário obrigações hipotecarias were upgraded from Baa3 to Baa1 by Moody’s, following the rating agency raising the Portuguese bond ceiling from Baa3 to Baa1 last Friday.

The rating agency has also raised the base Timely Payment Indicator (TPI) for Portuguese mortgage-backed covered bonds from “very improbable” to “improbable” because of an improving economy in Portugal, regained access to the private capital markets indicating improved funding conditions for the country, and improved cover pool credit quality.

As a result of the improved base TPI, Banco BPI, Banco Espírito Santo and Caixa Geral de Depósitos’ mortgage-backed covered bonds were upgraded from Baa3 to Baa2.