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Bearish Commerzbank dubs Eurohypo €5.2bn UK loan book “high risk”

Commerzbank has reclassified the legacy €5.2bn Eurohypo UK commercial real estate (CRE) loan book as “high risk” as part of a new three-band risk framework for its outstanding €55bn European CRE loan book, reflecting a bearish view on the outlook for property fundamentals in the UK.
By James Wallace
February 15, 2013 | 7:10 P.M.

Germany’s second-largest bank assessment of the renamed Hypothekenbank Frankfurt’s UK CRE loan book is based on expectations of the performance of the underlying real estate and, in turn, the securing loans.

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