Standard & Poor's today rated a $200 million covered bond deal from Panama's Global Bank, the first of its kind in Latin America.

Rated 'BBB-,' the transaction is part of a $500 million program.

The deal's creditworthiness is supported by an initial overcollateralizaton of 18.5%, apart from the standard double-recourse feature of a covered bond. Some 47% of the covered pool enjoys an interest rate subsidy from the Panamanian government that last for the first 15 years of a loan's life, according to a pre-sale from S&P. The transaction also features a true sale of the mortgage loans from Global Bank to a guarantee trust.


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