Spanish securitizations may have proven more resilient than originally expected during the Eurozone crisis.

However, Fitch Ratings analysts said that the time needed to work through the current crisis means transaction performance is likely to deteriorate further before it improves.

High unemployment and the lack of liquidity in the housing market are the most pressing macro concerns for Spanish securitizations.

These developments make the rating performance for Spanish securitizations worse. These deals have already been downgraded more than the European average since the start of the credit crisis. Fitch currently has a negative outlook on over 39% of its rated Spanish structured finance tranches while over 13% are on rating watch negative.

In Fitch's latest structured finance snapshot, the rating agency highlights the risk associated with a lack of highly rated Spanish banks able to participate on ‘AAA’-rated transactions, which the agency said was so far being mitigated by implementing measures such as a guarantor or collateral to remedy or avoid counterparty trigger breaches on existing transactions.

"This is showing that originators continue to view securitization as a valued funding tool for Spanish banks," said Fitch analysts in the report.

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