DBRS Morningstar Releases a Commentary titled "European Nonperforming Loan Securitisations Performance - 2021 Update"

DBRS Ratings Limited and DBRS Ratings GmbH (together, DBRS Morningstar) released a commentary titled “European Nonperforming Loan Securitisations Performance - 2021 Update”.

The report analyses the performance of European NPL transactions following the outbreak of the Coronavirus Disease (COVID-19) based on the latest available information and identifies key trends across the Italian, Portuguese, Spanish and Irish jurisdictions along with peculiarities observed at a transaction level based on deal-specific aspects. The report covers 20 out of the 29 NPL transactions DBRS Morningstar publicly rated up to the first half of 2020. For each jurisdiction, the report provides a summary of the macroeconomic scenario and for each transaction an overview of the performance evolution amid coronavirus and the impact on the updated business plan provided by the servicers.

Save for a few exceptions, the European NPL transactions have experienced some form of disruption as a consequence to the spread of the pandemic; however, the severity the impact from the crisis has varied on a case-by-case basis, depending on both external factors (e.g., scope and duration of the extraordinary measures imposed by local governments in an effort to contain the pandemic, macroeconomic outlook, etc.) and intrinsic aspects (e.g., transaction-specific features such as liquidity support structure, pool composition, servicing strategy, etc.).

“The current expectation is that with the progressive lifting of the extraordinary measures imposed by the governments and the gradual reduction of the backlog currently affecting the legal systems at a local level, will allow the servicers to restore the ordinary implementation of their judicial strategies in the medium term, albeit the long-term implications of the pandemic on the local real estate markets will need to be closely monitored in order to assess impacts on value and liquidity of the collateral properties” states Laura Lombardo, Assistant Vice President, European NPLs at DBRS Morningstar.

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

For more information on these industries, visit www.dbrsmorningstar.com or contact us at info@dbrsmorningstar.com.

For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/357883.

For more information regarding structured finance rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/358308.

For more information regarding the structured finance rating approach and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/359905.

DBRS Ratings Limited
20 Fenchurch Street, 31st Floor,
London EC3M 3BY United Kingdom
Registered and incorporated under the laws of England and Wales: Company No. 7139960
Tel. +44 (0) 20 7855 6600

DBRS Ratings GmbH
Neue Mainzer Straße 75
60311 Frankfurt am Main Deutschland
Tel. +49 (69) 8088 3500
Geschäftsführer: Detlef Scholz
Amtsgericht Frankfurt am Main, HRB 110259