Moody’s put on review for upgrade 69 European covered bond programmes as well as those of Bank of America and Panama’s Global Bank yesterday (Tuesday) following the introduction of Counterparty Risk (CR) assessments, with another on review direction uncertain, four affirmed, and one on review for downgrade.

After a request-for-comment period, the rating agency on Monday announced that it would be switching its reference point for covered bond anchors to a new Counterparty Risk assessment being introduced as part of wider changes to its bank rating methodology.

“The ratings of 69 covered bonds were placed on review for upgrade because Moody’s expects their covered bond anchors to be positioned above the current covered bond anchor,” it said.

The only issuance on review for downgrade is that of Dexia Secured Funding Belgium NV II. The A2 rating is on review for downgrade as Moody’s said it expects the anchor to be below the current level. The Dexia Secured Funding Belgium NV II issuance – which benefits from a guarantee from Belfius Bank – was only last month upgraded from Baa1 to A2.

The Baa3 rating of a Banca Carige commercial mortgage covered bond programme – which was previously on review for downgrade – is on review with direction uncertain because the anchor could be above or below the current rating, according to the rating agency.

It said that the anchors of the four affirmed programmes – which were all also previously on review for downgrade – are expected to remain at their current level. These are: mortgage and public sector covered bonds of Raiffesien-Landesbank Steiermark, Unicredit Bank Austria public sector covered bonds, and National Bank of Greece Programme II.

The A1 rating of BA Covered Bond Program is being reviewed for upgrade as Moody’s expects the anchor to be higher than currently, the rating agency said, noting that the A2 rating of Bank of America was placed on review for upgrade yesterday.

Moody’s also put on review for upgrade the Baa3 rating of the covered bond programme of Panama’s Global Bank Corporation, citing its expectation that the anchor will be higher than currently.

The announcement of the reviews came after Moody’s earlier yesterday announced bank rating actions affecting over 1,000 entities due to the introduction of its new bank rating methodology.