The contractually committed credit enhancement exceeds the credit enhancement required at a 'AAA' rating level. The foundation account structure effectively mitigates commingling risk. The structure's soft bullet extendible maturities mitigate 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 stable outlook on our rating on the mortgage covered bonds issued by Netherlands-based NIBC Bank N.V. (BBB/Stable/A-2) reflects the unused notch of collateral uplift. Under our covered bonds criteria, we would not automatically lower the ratings on the covered bonds if we were to lower our long-term issuer credit rating (ICR) on NIBC Bank
