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Abanca, Cajamar cédulas upped by S&P

S&P yesterday (Thursday) upgraded the cédulas hipotecarias of Abanca to AA- and those of Cajamar to A+ following upgrades to Spain and improvements in the rating agency’s credit opinion of the two issuers.

Spanish FlagThe one notch upgrade to Abanca’s cédulas, from A+, comes after S&P on 23 March upgraded Spain from BBB+ to A- and Abanca’s issuer credit rating from BB- to BB.

The covered bond rating has been placed on positive outlook, reflecting S&P’s positive outlooks on Spain and on Abanca’s issuer credit rating.

“A positive rating action on the issuer combined with a positive rating action on the sovereign will result in a similar rating action on Abanca’s covered bonds, all else being equal,” said the rating agency.

S&P said the upgrade to Cajamar Caja Rural’s cédulas – also of one notch, from A – meanwhile reflected its view of the issuer’s creditworthiness. The cédulas were put on positive outlook alongside Abanca’s and several other issuers’ when the sovereign was put on positive outlook last year.

Also yesterday, Fitch revised its outlook on Abanca’s cédulas from stable to positive and affirmed the rating at A-. Fitch said the move mirrors a corresponding revision of Abanca’s Issuer Default Rating (IDR) outlook, and strong protection offered via overcollateralisation (OC), which is sufficient to offset estimated credit losses in higher rating stresses.