The cover pool comprises geographically diversified prime residential mortgages, which we view as relatively low-risk exposures. The foundation account structure effectively mitigates commingling risk. The structure features soft-bullet extendible maturities, which mitigates liquidity risk. The fixed-rate loans with future reset dates, which are typical in the Netherlands, introduce an element of volatility in asset collections compared to fixed-for-life loans, which we consider in our cash flow analysis. The liability profile, comprising only the single bond being issued, makes the transaction's credit enhancement sensitive to future changes in the asset-liability mismatch introduced by any new issuance. The stable outlook on our rating on the mortgage covered bonds issued by Netherlands-based NIBC Bank N.V. (BBB+/Stable/A-2) reflects the two unused notches of collateral
