...Committed OC Supports Ratings: The levels of committed overcollateralisation (OC) that Portuguese issuers disclose in their investor reports support a given covered bond (CVB) rating above the issuers' Long-Term Issuer Default Rating (IDR), as adjusted by the IDR uplift (see Figure 1). The committed OC provides more protection than Fitch Ratings' breakeven (BE) OC for the respective instrument ratings and allows a recovery uplift of one to three notches from the tested rating on a probability of default (PD) basis, which is equalised to the IDR, as adjusted by the IDR uplift. Positive IDR Uplift: Fitch's IDR uplift is 1 for all Portuguese programmes. This is based on CVB exemption from bail¡in and the Bank of Portugal's (BoP) decision to classify all Fitch-rated Portuguese covered bond issuers as domestically systemically important financial institutions. The IDR uplift of 1 also reflects Fitch's view that resolution methods other than liquidation could likely be used to preserve important...
