Scope Ratings GmbH (Scope) downgrades the class A notes issued by BCC NPLs 2018-2 S.r.l., a static cash securitisation of Italian non-performing loan receivables, following a performance review.

The downgrade is driven by a much weaker financial risk profile as customers of Optimum Solar find it hard to finance projects, hampering its operations. Other problems include poor governance and imminent default risk due to a lack of liquidity.

For the second year, Italian NPL collections were significantly higher in February month over month, rising 39% in 2022 and 32% in 2021. Note sales hit their second highest share in a year but this does not signal a trend in recovery strategies.

Scope Ratings has today assigned a B+ rating to the HUF 64.5bn senior unsecured bonds to be issued by PolSolar Kft and maturing in April 2037. The bonds will finance the construction of five greenfield Hungarian photovoltaic plants.

Capital Group’s exit this week from Deutsche Bank and Commerzbank is unlikely to affect the banks’ in-process strategic restructuring programmes, notwithstanding wider concerns about business prospects for European banks in the short to medium term.

Scope Ratings GmbH (Scope) has reviewed the annual performance of Aragorn NPL 2018 S.r.l., a static cash securitisation of a portfolio of Italian non-performing loans originated by Credito Valtellinese S.p.A. and Credito Siciliano S.p.A.

Germany’s growth prospects are looking increasingly vulnerable to higher-than-expected inflation, which is undercutting household incomes and disrupting supply chains, and the impact of tougher sanctions on Russia.

Scope Ratings GmbH (Scope) has reviewed the performance of Alba 11 SPV S.r.l. and has taken the following rating actions:

Scope has transitioned its AT1 Quarterly to a new Capital Quarterly. It is important to look beyond CET1 capital, which may not be the binding constraint for a bank, especially as leverage and loss-absorbing requirements become increasingly relevant.

High energy prices triggered by the Russia-Ukraine war will push up the cost of electricity in Africa, where countries typically derive about 80% of electrical power from fossil fuels, increasing risks for growth and public finances.