Standard & Poor’s upgraded 14 multi-cédulas yesterday (Monday) mainly because it considers that collateral credit quality has improved, although some of the rating actions also reflect an upgrade of the Spanish sovereign in late May.

According to S&P, the upgrades follow a series of positive rating actions affecting a mix of Spanish standalone covered bond programmes, issuer ratings, and the sovereign. S&P upgraded Spain from BBB- to BBB on 23 May.

“These rating actions have generally improved the underlying collateral’s credit quality for the multi-cédulas, reducing their scenario default rates (SDRs),” said the rating agency.

S&P upgraded one of the 14 multi-cédulas series by two notches and the others by one notch.

The affected multi-cédulas and the associated rating changes are: AyT Cédulas Cajas Global II and VI (BBB to BBB+); AyT Cédulas Cajas Global XXIII, XXIV and XXVI (AA- to AA); AyT Cédulas Global XXV (A- to A+); AyT Cédulas Cajas A (BBB to BBB+); Programma Cédulas TDA A3 (BBB+ to A-); Programma Cédulas TDA A5 (BB+ to BBB-); IM Cédulas 4 A (A+ to AA-); Intermoney Master Cédulas A (BBB- to BBB); Cédulas TDA 18 (AA- to AA); Cédulas TDA 21 (AA- to AA); and Cédulas Grupo Banco Popular 3 (AA- to AA).

Following the sovereign upgrade, S&P’s non-sovereign rating criteria cap ratings of Spanish multi-cédulas at AA, although analysts have noted that the rating agency is working on a new sovereign ceiling methodology that could reverse the upgrades.