DBRS Morningstar Releases Commentary on COVID-19: Payment Suspensions and Economic Impact on Italian RMBS, SMEs, and Salary Assignment Loan Securitisations

DBRS Morningstar released a commentary titled, “COVID-19: Payment Suspensions and Economic Impact on Italian RMBS, SMEs, and Salary Assignment Loan Securitisations”.

This commentary focuses on the potential impact on Italian residential mortgage-backed securities (RMBS), small and medium-size enterprises (SMEs), and salary assignment loan (SAL) Securitisations following the Italian government’s economic measures aimed at easing the Coronavirus Disease (COVID-19)’s emergency’s impact on families and businesses.

Key highlights in the commentary include:

-- Outline of the Italian government’s actions as part of the “Decreto Cura-Italia”.
-- The potential impact of such economic measures on RMBS, SMEs, and SAL securitisations.
-- RMBS transactions are well supported by cash reserve funds that should mitigate any rating impact in the short term.
-- SMEs also mostly have strong reserves, but the concern beyond short-term impact remains.
-- SAL securitisations face impact from sovereign risk and the financial health of insurers.

Notes:
The full commentary is available at www.dbrsmorningstar.com.

For more information on this credit or on this industry, visit www.dbrsmorningstar.com or contact us at [email protected].

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