Fitch Ratings Revises the Outlook of 17 CLN Transactions to Negative.
London/Milan: Fitch Ratings has revised the Outlooks of 17 credit-linked notes (CLNs) to Negative from Stable.
A full list of affected notes is available at www.fitchratings.com or by clicking the link above.
KEY RATING DRIVERS
Italy's Outlook to Negative
The Outlook change for seven CLN transactions follows a recent similar rating action on the Italian sovereign, which is one of the risk-presenting entities in these transactions and the weakest link. The Negative Outlooks on the CLNs are in line with the Outlook on the weakest link.
On 31 August 2018, Fitch revised Italy's Outlook to Negative from Stable and affirmed its Long-Term Foreign- and Local- Currency Issuer Default Ratings (IDRs) at 'BBB.
Mediobanca's Outlook to Negative
The Outlook change for the other 10 CLN transactions follows a recent similar rating action on Mediobanca, which is one of the risk-presenting entities in these transactions and the weakest link. The Negative Outlooks on the CLNs are in line with the Outlook on the weakest link.
On 5 September 2018, Fitch revised Mediobanca's Outlook to Negative from Stable and affirmed its Long-Term IDR at 'BBB'.
Fitch monitors the performance of the underlying risk-presenting entities and adjusts the rating of each CLN transaction accordingly. To the extent the Italian sovereign or Mediobanca is the weakest link, a downgrade event would determine a downgrade of the CLN.
USE OF THIRD-PARTY DUE DILIGENCE PURSUANT TO RULE 17G-10
Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action.
Fitch has not conducted any checks on the consistency and plausibility of the information it has received about the performance of the asset pools and the transactions. Fitch has not reviewed the results of any third-party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring.
Overall, Fitch's assessment of the information relied upon for the agency's rating analysis, according to its applicable rating methodologies, indicates that it is adequately reliable.
SOURCES OF INFORMATION
The information below was used in the analysis:
- Italy's and Mediobanca's IDRs.
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|Publication:||Daily the Pak Banker (Lahore, Pakistan)|
|Date:||Dec 19, 2018|
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