Fitch keeps BoC’s covered bonds on Rating Watch Negative

Fitch Ratings has maintained Bank of Cyprus’s covered bonds secured by Cypriot assets on Rating Watch Negative, it announced on Monday.

The covered bonds’ B rating was originally placed on “negative” on March 28.

The covered bonds have been maintained on “negative” as there have been no material changes since March with regard to the road map for the recapitalization of BoC and the restructuring of the island’s banking sector, which could affect the covered bonds rating.

Fitch announced it is reviewing the impact of the current recession on the performance of the residential mortgage portfolio.