New analysis on mortgage-covered bonds issued by Austrian Hypo-Bank Burgenland
Hypo-Bank Burgenland AG’s AAA mortgage covered bond rating reflects the bank’s issuer rating of A-, enhanced by up to eight notches of cover pool support – six of which are only needed to support the highest rating. Credit risks stemming from the mixed cover pool in combination with asset-liability mismatches drive the level of rating-supporting OC of 10.0%. Risks are generously buffered by available overcollateralisation of 70.5% as of 30 September 2023.
Provided that the covered bond programme’s risk structure does not change materially, the current covered bond ratings could remain unchanged up to a two-notch downgrade of the issuer – also supporting the Stable Outlook on the covered bonds.