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Spanish Multi-Cédulas: What's Behind Standard & Poor's Recent Downgrades

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Uploaded by on Aug 2, 2011

On Aug. 1, 2011, Standard & Poor's lowered its ratings on 46 Spanish repackaged covered bonds--known as "multi-cédulas"--and removed them from CreditWatch negative. The actions reflect our view of deteriorating creditworthiness of the participating financial institutions, and, in some cases, the potential effect of higher concentration in the financial institutions sector. In this CreditMatters TV segment, Karlo Fuchs, analytical manager for Covered Bond Ratings, provides an overview of the multi-cédulas product, and explores what's behind our recent rating actions.

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