• Home
  • NAMA property for sale
  • About
  • The Developers
  • The Tranches

NAMA Wine Lake

Click the green link above for latest news and over 2,600 related articles. NAMA – National Asset Management Agency – part of Ireland's response to its banking crisis and property bubble

Feeds:
Posts
Comments
« How Paul Tweed’s Johnsons Solicitors are trying to muzzle the NAMAwinelake blog
Can a NAMA developer really be buying his own loans from NAMA at a discount? »

Ratings agency gives impressive thumbs-up to NAMA

May 5, 2013 by namawinelake

“DBRS sees NAMA’s efficient operating structure, good revenue stream from investment properties and continued solid realization of value from the property portfolio as underpinning NAMA’s profitability in 2013. Further, DBRS sees Irish property values as staying within a narrow band through 2013, which combined with the noteworthy discounts on the property book, should limit further credit losses and support earnings.” Ratings agency DBRS note on NAMA

Canadian ratings agency, DBRS is generally overshadowed by its more successful troika of competitors – Standard and Poor’s, Fitch and Moody’s – though the NTMA seems to disproportionately refer to DBRS. This week, it issued a briefing note on NAMA. It is available here though free registration is required to access it, it’s contains a large amount of well-assembled facts and figures though there is nothing there that should surprise the regular audience on here. You might take some opinions with a pinch of salt, but ratings agency opinions are of more interest than the norm on here, because they tend to be independent.

DBRS pays NAMA some handsome compliments. It says the Agency has assembled a “talented team” with “deep experience” and with “the necessary skills to extract the best possible return from the loans and underlying property assets”. DBRS goes on to say “NAMA has developed a robust and efficient infrastructure that allows NAMA the flexibility to develop individual responses to each debtor that bests maximizes the returns “

DBRS might be overegging NAMA’s progress with agreeing business plans and a sizable number of developers might take issue with the view expressed that “NAMA continues to actively manage the assets and invest in the assets so to optimize the income producing potential and disposal value of the assets” The sale of the Project Aspen portfolio with 60% staple funding and a 20% equity retention for NAMA in return for diluting its security, was not greeted well on here. The recent move by one of NAMA’s most reputable developers, Sean Mulryan’s Ballymore, to sell a large development site in London’s Docklands also prompts questions about NAMA’s mission to profitably enhance assets with the objective of maximizing returns – here you have a 37 acre site being sold off by one of the few companies which has a proven record of developing such large sites, and you have NAMA snaffling the proceeds so that it can pay down funding which costs it 0.3% per annum – full cost of capital has been recently estimated at 1.5%.

DBRS also notes that the short term outlooks for the Irish property markets are “challenging” though unlike Fitch, Moody’s and S&P, there is no prediction for price changes; it says “DBRS considers NAMA’s credit risk profile as elevated given the concentrated exposure to the Irish property markets, which remain challenged owed to the lack of liquidity, high unemployment, strained rental rolls and weak consumer confidence.” However DBRS notes that NAMA acquired the loans at just 43c in the euro so has some cushioning, though I don’t think DBRS has sufficiently accounted for the 27% and 32% declines in commercial and residential property since NAMA’s valuation date of November 2009.

The note is well worth a read, and at the bottom has a useful three year financial summary of NAMA’s operations.

Advertisement

Share this:

  • Twitter
  • Facebook
  • Reddit

Like this:

Like Loading...

Related

Posted in IMF, Irish economy, NAMA, Politics |

  • Recent Posts

    • Test – 12 November 2018
    • Farewell from NWL
    • Happy 70th Birthday, Michael
    • Of the Week…
    • Noonan denies IBRC legal fees loan approval to Paddy McKillen was in breach of European Commission commitments
    • Gayle Killilea Dunne asks to be added as notice party in Sean Dunne’s bankruptcy
    • NAMA sues Maria Byrne and Graham Byrne in Dublin’s High Court
    • Johnny Ronan finally wins a court case
  • Recent Comments

    Wisemama on Eddie Hobbs’s US “partner” fir…
    Dorothy Jones on Of the Week…
    Sean Bean on Eddie Hobbs’s US “partner” fir…
    John Foody on Of the Week…
    Wisemama on Eddie Hobbs’s US “partner” fir…
    otto on Of the Week…
    Frank Street on Of the Week…
    Wisemama on Eddie Hobbs’s US “partner” fir…
    John Gallaher on Of the Week…
    John Gallaher on Of the Week…
    who_shot_the_tiger on Eddie Hobbs’s US “partner” fir…
    Sean Bean on Eddie Hobbs’s US “partner” fir…
    otto on Of the Week…
    Brian Flanagan on Of the Week…
    Robert Browne on Gayle Killilea Dunne asks to b…
  • Twitter Updates

    • Funniest case in Irish legal history? 1. ex-Cllr Fred Forsey convicted of RECEIVING a corrupt payment 2. developer… twitter.com/i/web/status/1… 4 years ago
    • Really looking forward to this at 9pm tonight, esp the first Garda on the scene. Well worth reading this background… twitter.com/i/web/status/1… 4 years ago
    • Tea time on the day the president of the ECB tells us we [in Ireland] are paying more interest on our loans than th… twitter.com/i/web/status/1… 4 years ago
    • “I am grateful for you to refer to Mr Sugarman...on the specific question of Unicredit, responsibility at ECB lies… twitter.com/i/web/status/1… 4 years ago
    • @JMcGuinnessTD now confronts ECB about "the honest whistleblower" @WhistleIRL and his disclosures of liquidity issu… twitter.com/i/web/status/1… 4 years ago
    • Details, including court documents of class action in New York against Ryanair and CEO Michael O'Leary.… twitter.com/i/web/status/1… 4 years ago
    • Draghi tells @paulmurphy_TD the ECB doesn't remove govts, the people do, that's democracy. Bet the people will be m… twitter.com/i/web/status/1… 4 years ago
    • Wow! Draghi says there is no net interest cost for the Anglo bonds whilst they're held by the Irish central bank. T… twitter.com/i/web/status/1… 4 years ago
    Follow @namawinelake
  • Click on date for that day’s posts

    May 2013
    M T W T F S S
     12345
    6789101112
    13141516171819
    20212223242526
    2728293031  
    « Apr   Nov »
  • Blog Stats

    • 5,113,731 hits

Blog at WordPress.com.

WPThemes.


Privacy & Cookies: This site uses cookies. By continuing to use this website, you agree to their use.
To find out more, including how to control cookies, see here: Cookie Policy
  • Follow Following
    • NAMA Wine Lake
    • Join 1,326 other followers
    • Already have a WordPress.com account? Log in now.
    • NAMA Wine Lake
    • Customize
    • Follow Following
    • Sign up
    • Log in
    • Copy shortlink
    • Report this content
    • View post in Reader
    • Manage subscriptions
    • Collapse this bar
%d bloggers like this: