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npl-reo Market News: Spanish Real Estate Intelligence

DBRS Predicts Worsening Credit Ratios in 2021
12 August 2020 – DBRS Morningstar, a credit rating agency, published a note predicting a "more pronounced" worsening of the quality of Portuguese banking assets in 2021, given the lessened support of moratoria, state-guaranteed loans and other public measures designed to ameliorate the pandemic's impact. In addition to an expected increase in non-performing loans as a consequence of the reduced support, credit risk has increased significantly since loans were initially assessed. At the same time, the economy's deterioration makes it much more difficult for banks to continue to reduce their pre-Covid-19 exposure to non-performing loans. According to DBRS, "the sectors most vulnerable to the pandemic are those directly and indirectly linked to the tourism industry, which is a key driver of the Portuguese economy, such as hotels, restaurants and transport, as well as various industrial sectors", and while "the real estate sector has so far remained stable, it may come under pressure should the unemployment rate increase significantly." Original Story: Diário Imobilário - Rita Neto Translation/Summary: Richard D. Turner
 
Parvalorem to Sell €265-Million Miraflores Portfolio
12 August 2020 – Parvalorem, a company that was created to take on Banco Português de Negócios’s (BPN) bad debts, announced that it would sell a €265-million portfolio of properties dubbed the Miraflores Project. Its assets include over one hundred properties, mostly commercial, mainly located in Lisbon and Porto. Included in the portfolio are properties within the investment funds managed by Imofundos (BPN’s former management company) and Imofundos itself. Most of the properties are commercial, with offices, shops and logistics assets, with a small part relating to housing and land. The Miraflores Project would typically attract the interest of private equity funds, which buy assets at a discount looking to achieve high returns. Parvalorem has hired Alantra to coordinate the sales process. Original Story: Economia Online - Rita Neto Translation/Summary: Richard D. Turner
 
NPLs Down 2.9% in 1Q20 in Portugal
10 August 2020 - Portuguese banks’ stock of non-performing loans fell by 492 million euros (-2.9% q-o-q), a slowdown compared to the same period of 2019, according to a quarterly report published by the Bank of Portugal. In the first quarter of 2020, the NPL CET1ratio stood at 6.0% (-0.2 percentage points compared to December 2019), and the NPL net impairment ratio reached 2.9% (-0.1%). The liquidity coverage ratio reached 225.9%, up by 7.4% q-o-q, with an increase in highly-liquid assets (1.5%) and a decrease in net liquidity outflows (-1.9%). The total equity ratio and the Tier 1 ratio (CET 1) both fell by 0.2%, to 16.7% and 14.1%, respectively. Original Story: Economia Online - Translation/Summary: Richard D. Turner