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.

This is not a rating action. On 22 November 2023, Scope affirmed the covered bonds at AAA/Stable. Click here for the corresponding press release.

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