June 7 (Bloomberg) -- Spanish house prices may decline as much as 52 percent in a period of economic stress, according to Moody’s Investors Service.
The forecast decline is based on a model combining factors such as homes price increases in the last 10 years and unemployment rates, analysts including London-based Nitesh Shah said in a June 6 note. U.K. home prices are the second most at risk in Europe, facing the prospect of a 42 percent drop.
The house-price stress rate is among elements the New York-based rating company used to update its methodology assessing residential mortgage-backed securities transactions in Europe. A total 27 transactions face negative rating actions as a result of the changes, the company said in a separate statement.
To contact the reporter on this story: Esteban Duarte in Madrid at email@example.com
To contact the editor responsible for this story: Paul Armstrong at firstname.lastname@example.org