Moody’s downgraded Cajas Rurales Unidas mortgage and public sector-backed covered bonds from Ba1 to Ba2 on Friday after downgrading the issuer, with the rating agency subsequently withdrawing its rating of the cédulas territoriales.

The rating agency said that the downgrade of the covered bonds was the result of it cutting the issuer’s senior unsecured rating, which is not disclosed.

Under Moody’s methodology, Cajas Rurales Unidas is assigned a timely payment indicator (TPI) of “probable”, which constrains the maximum achievable rating for the covered bonds at Ba2, according to the rating agency. The covered bond anchor point for Cajas Rurales Unidas covered bonds is the senior unsecured rating plus zero notches. The TPI leeway is limited, so any downgrade of the senior unsecured rating would lead to a downgrade of the covered bonds.

Moody’s said that it has withdrawn the rating of Cajas Rurales Unidas’ public sector-backed covered bonds because of inadequate information to monitor the rating. It said that this was due to the issuer’s decision to cease participation in the rating process.

A spokesperson at the savings bank said that it cancelled its Moody’s ratings a few years ago, and that its ratings of CRU’s bonds are based on public information only.

CRU was formed in 2012 from the merger of Cajamar and Cajas Rurales Unidas Sociedad Cooperativa de Credito.