Scope affirms the class A notes issued by Hestia Financing S.à r.l., a cash securitisation of Cypriot non-performing loans and Real Estate Owned properties.

The rating on Hypo-Bank Burgenland AG’s Austrian mortgage covered bonds (Hypothekenpfandbriefe) reflects the issuer's A- rating enhanced by six notches from governance and cover pool support.

Spanish banks enjoyed a strong Q3 driven again by high interest margins and low provisions. The challenge now is to return to steady loan growth while generating more commissions as interest margins shrink. Extension of the bank tax could erode profits.

The credit rating Outlooks for supranational institutions and multilateral development banks (MDBs) rated by Scope remain Stable, signalling that risks facing the high-rated issuers are balanced going into the new year despite geopolitical uncertainties.

Significant capacity growth, followed by fast deleveraging and operation of a resilient business model with low volatility of operating profitability drive the upgrade of the issuer rating to BB from BB-.

Strong integration with its owning counties, high strategic importance in regional development, a strong market position, and resilient toll revenue are strengths. High leverage and significant capital expenditure are challenges.

The uncapped guarantee instruments senior risk covers in EIB SME initiative for Romania have been fully redeemed.

No action has been taken on Class A notes issued by Spring SPV S.r.l. following the monitoring review.

The rating action is based on the improving trend expected for credit metrics in the coming years amid the finalisation of the company’s investment phase, with a financial risk profile likely to strengthen which support the Positive Outlook.

Following the affirmation of the BB/Stable issuer rating on 15 August 2024, Scope has released an associated analytical report on Bonafarm Zrt.