OREANDA-NEWS. Fitch Ratings has updated its criteria for analysing securities backed by Irish residential mortgage loans.

The assumptions are used for rating new and existing RMBS transactions as well as mortgage covered bond programmes. In addition the market value decline assumptions are applicable to the ratings of SME CLOs secured by residential real estate.

The criteria addendum replaces the report of the same name dated 19 September 2014.

The market value decline assumptions for properties in Dublin and outside Dublin have been updated to reflect the latest house price index data.

In addition, the increase in the probability of default adjustment for bankruptcy orders, court judgements and prior mortgage arrears, previously defined on a case-by-case basis, has been specified in the criteria report. The adjustment for buy-to-let mortgages is no longer a range and has been set at 60%.

The update does not have any impact on existing ratings.