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Cajamar Caja Rural S.C.C.Spanish Mortgage Covered Bonds Outlook Revised To Stable; 'AA' Ratings Affirmed

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Cajamar Caja Rural S.C.C.Spanish Mortgage Covered Bonds Outlook Revised To Stable; 'AA' Ratings Affirmed

Overview

  • On Nov. 26, 2020, we assigned our 'BB/B' long- and short-term issuer credit ratings to Banco de Credito Social Cooperativo S.A. and Cajamar Caja Rural S.C.C.
  • We have consequently revised to stable from negative the outlook on Cajamar Caja Rural's mortgage covered bond program and related issuances.
  • At the same time, we have affirmed our 'AA' ratings on the covered bonds.
  • The stable outlook on Cajamar Caja Rural's mortgage covered bonds reflects the stable outlook on the issuer.

MADRID (S&P Global Ratings) Dec. 9, 2020--S&P Global Ratings today revised to stable from negative its outlook on the credit ratings on Cajamar Caja Rural S.C.C.'s Spanish mortgage covered bond program and related issuances. We also affirmed our 'AA' ratings on the covered bonds.

Today's rating actions follow our Nov. 26, 2020 rating actions on subsidiaries of Grupo Cooperativo Cajamar (see "Spain-Based Banco de Credito Social Cooperativo S.A. And Cajamar Caja Rural S.C.C. Rated 'BB/B'; Outlook Stable").

There are no rating constraints related to country, counterparty, legal, or administrative and operational risks.

The stable outlook on Cajamar Caja Rural's mortgage covered bonds reflects that on the issuer and the fact that any rating action on the issuer would result in a rating action on the covered bonds, all other things being equal.

Potential Effects Of Covid-19

S&P Global Ratings believes there remains a high degree of uncertainty about the evolution of the coronavirus pandemic. Reports that at least one experimental vaccine is highly effective and might gain initial approval by the end of the year are promising, but this is merely the first step toward a return to social and economic normality; equally critical is the widespread availability of effective immunization, which could come by the middle of next year. We use this assumption in assessing the economic and credit implications associated with the pandemic (see our research here: www.spglobal.com/ratings). As the situation evolves, we will update our assumptions and estimates accordingly.

Potential Effects Of Proposed Criteria Changes

We announced on Oct. 30, 2020, that we are requesting comments on proposed revisions to our criteria for rating Spanish RMBS transactions and mortgage covered bonds (see "Request for comment: Global Methodology And Assumptions: Assessing Pools Of Residential Loans (Spain, Portugal, Italy, And Greece)"). The comment period for the proposed changes ended on Nov. 30, 2020. Any potential rating changes will depend on the final criteria adopted, as well as our assessment of the covered program . We note that the methodology used to analyze this covered bond program comes from our currently active criteria (see "Related Criteria").

Related Criteria

Related Research

Primary Credit Analyst:Maria Luisa Gomez Grande, Madrid + 34 91 788 7208;
marisa.gomez@spglobal.com

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