Fitch downgrades two Cypriot banks covered bonds

Fitch announced it maintained Marfin's programme one bonds to rating watch negative (RWN), while it removed Marfin programme two bonds from RWN. The agency also announced it maintained Bank of Cyprus' covered bonds under RWN.

According to Fitch, the outstanding Cypriot covered bonds represent EURO 4.2 billion of Fitch-rated debt on aggregate, including EURO 2 billion of bonds issued by Marfin under Programme I (Greek mortgage pool), EURO 1.5 bilion of covered bonds issued by Marfin under Programme II (Cypriot mortgage pool) and EUR700m of covered bonds issued by BoC (Greek mortgage pool).