Spanish Cédulas Hipotecarias Fail to Take Off Feb 01

Standard & Poors, February 2001

Abstract
In 1999, Standard & Poor's published its criteria for rating Spanish cédulas hipotecarias--bonds issued by Spanish financial institutions and secured by the issuer's entire book of mortgages. Since then, these instruments have been launched in the international capital markets, although their degree of success has been far below initial expectations despite the instruments' high degree of overcollateralization and a long default-free track record in the retail domestic market. The unenthusiastic welcome received by cédulas hipotecarias in the international arena can be largely attributed to the fact that, in the search for highly creditworthy instruments, investors' demands for a degree of transparency and instrument characteristics closely resembling those of the successful German Pfandbriefe have not been met. Uncertainties regarding provisions in...

Companies mentioned in this report are:
- Denmark (Kingdom of)
- France (Republic of) (Unsolicited Ratings)
- Spain (Kingdom of)
- Germany (Federal Republic of) (Unsolicited Ratings)
- Banco Bilbao Vizcaya S.A.
- Luxembourg (Grand Duchy of)
- Caja de Ahorros y Monte de Piedad de Madrid
- B.B.V. Finance (DE) Inc.
- BBVA Banco Frances S.A.
- Banco de Espana
- Banco Hipotecario S.A.
- Banco Bilbao Vizcaya Argentaria S.A.
- Madrid (City of)

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.

- Denmark (Kingdom of)
- France (Republic of) (Unsolicited Ratings)
- Spain (Kingdom of)
- Germany (Federal Republic of) (Unsolicited Ratings)
- Banco Bilbao Vizcaya S.A.
- Luxembourg (Grand Duchy of)
- Caja de Ahorros y Monte de Piedad de Madrid
- B.B.V. Finance (DE) Inc.
- BBVA Banco Frances S.A.
- Banco de Espana
- Banco Hipotecario S.A.
- Banco Bilbao Vizcaya Argentaria S.A.
- Madrid (City of)

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