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. Last Updated: 07/27/2016

Moody’s Warns on Mortgage Bonds

Delinquencies on Russian, Ukrainian and Kazakh mortgages packaged into bonds rose this year as their currencies weakened against the dollar, making it harder to repay debts, Moody’s Investors Service said Tuesday.

The ruble declined 26 percent against the dollar in the past year, Moody’s said. Ukraine’s hryvna has fallen 44 percent versus the dollar from a year earlier, and the Kazakh tenge has lost 20 percent.

The weaker ruble “combined with falling house prices and the elevated risk of unemployment does not bode well” for mortgage-backed deals pooling dollar loans, the analysts said.

Moody’s rates 15 Russian, Ukrainian and Kazakh mortgage-backed deals with a total face value of $2.9 billion.

The delinquency rate of loans securing Russian Mortgage-Backed Securities 2006-1 SA increased to 1.37 percent from 0.18 percent at the end of last year.