This report provides a visual summary of the economic conditions, credit performance, issuance expectations and ratings outlook. A forceful and swift policy response helped collateral performance since the onset of the pandemic. Overcollateralization and structural features will support covered bond ratings once these policies are scaled back. While we believe that commercial real estate asset performance may deteriorate, we do not anticipate this significantly impairing the credit quality of the covered bonds that we rate, due to the availability of credit enhancement to absorb losses and the limited exposure to sectors that we consider to be more at risk.