S&P Releases Revised Covered Bonds Rating Methodology - Update

[update adds additional link]

Standard & Poor's Wednesday (Dec. 16) released a methodology document titled "Revised Methodology and Assumptions for Assessing Asset-Liability Mismatch Risk in Covered Bonds."  In conjunction with this, the rating agency placed 98 covered bond programs on watch.

Here are links to three articles on the topic:

• "S&P Fails to Cool Banks' Ardour for Covered Bonds" (Reuters, Dec. 17)

• "S&P Puts 1.46 Trillion Euros of Covered Bonds on Watch" (Reuters, Dec. 16)

• "S&P Changes Could Affect $2.12 Trillion in Covered Bonds" (Wall Street Journal, Dec. 16)