Moody’s upgraded Cajamar Caja Rural cédulas hipotecarias from Baa3 to A3 on Friday, on the back of an improvement in credit quality of sponsor bank Banco de Crédito Social Cooperativo.

Moody’s does not publish a rating or credit assessment of Banco de Crédito Social Cooperativo, the head bank of Grupo Cooperativo Cajamar, but said that an improvement in its credit quality is the reason for the three notch upgrade to the mortgage covered bonds of Cajamar Caja Rural.

Moody’s said the overcollateralisation level of the programme is consistent with the new A3 rating, which is the highest possible under Moody’s timely payment indicator (TPI) framework.