Emerging from the COVID-19 Pandemic: Update on European Mortgage Performance
As we draw closer to the end of the current Coronavirus Disease (COVID-19) pandemic, it is evident that the anticipated deterioration in mortgage and housing markets across European jurisdictions has been avoided. Government-imposed restrictions on movement have been relaxed and uncertainty about economic activity for both consumers and businesses has eased.As part of its review for this commentary, DBRS Morningstar:
-- Found resilient performance trends,
-- Observed positive house price movements; and
-- Hence, removed all coronavirus-related adjustments to our analysis.
“The reduction in the coronavirus-adjustments would lead to lower probability of default and loss given default for some portfolios backed by residential mortgages and/or properties. We do not expect immediate rating actions on residential mortgage-backed security and covered bond transactions, but we do expect some rating actions for certain Italian and Spanish nonperforming loan transactions”, stated Rehanna Sameja, Senior Vice President of European RMBS and Covered Bonds at DBRS Morningstar.
DBRS Morningstar is a global credit ratings business with 700 employees in eight offices globally. DBRS and Morningstar Credit Ratings are committed to empowering investor success, serving the market through leading-edge technology and raising the bar for the industry.
Together, we are the world’s fourth largest credit ratings agency and a market leader in Canada, the U.S. and Europe in multiple asset classes. We rate more than 2,600 issuers and 54,000 securities worldwide and are driven to bring more clarity, diversity and responsiveness to the ratings process. Our approach and size provide the agility to respond to customers’ needs, while being large enough to provide the necessary expertise and resources. For more details visit us at dbrs.com.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.