LONDON–(BUSINESS WIRE) – Kroll Bond Rating Agency UK Limited (KBRA) publishes analysis of the performance of the restructured loan portfolio in Ireland which is expected to remain positive in a positive environment for restructured borrowers. There are still many restructured loans outstanding in Ireland, with borrowers maintaining their payments and following the adjusted loan terms. KBRA has been active in rating portfolios of restructured loans in European securitization markets.
The central theses
Withheld interest rates – a measure of whether the borrower meets the terms of a restructured loan – play a critical role in assessing the performance of restructured loan pools compared to traditional metrics.
Split mortgages and arrears remain the predominant choice among many loan restructuring methods in Ireland.
Restructured portfolios in Ireland are facing a supportive environment in which borrowers can maintain payments.
Average rental rates are higher than typical lending rates.
The rise in house prices has freed many borrowers from negative equity.
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KBRA is a US, EU and UK registered full service credit rating agency dedicated to providing structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.