Press Release|RMBS
KBRA Releases Research – KBRA-Rated European RMBS Exposure to Wildfires in Spain
31 Jul 2026 | London
KBRA releases research assessing the potential exposure of KBRA-rated European residential mortgage-backed securities (RMBS) transactions to the ongoing wildfires in Spain. Spain is confronting an exceptionally severe wildfire season, with approximately 173,000 hectares burnt from the start of the year through 28 July, nearly six times the amount recorded over the same period in 2025. The three largest documented wildfire areas included in KBRA’s review are located in Avila, Guadalajara, and Madrid, while other significant incidents have affected Toledo, Castellon, Valencia, and Almeria.
Key Takeaways
- KBRA’s postcode- and town-level review identified limited potential exposure in Madrid, Castellon, Cantabria, and Almeria. No exposure was identified in the larger Avila, Guadalajara, or Zaragoza wildfire areas.
- KBRA has outstanding ratings on eight Spanish RMBS transactions with an outstanding portfolio balance of EUR3.7 billion. Postcode- and town-level data were available for six transactions.
- Across the six portfolios with postcode- and town-level data (representing a combined closing or current balance of EUR2.4 billion), the estimated exposure to the seven documented ongoing wildfire-affected areas is minimal, at 0.5% of the combined collateral balance outstanding (EUR12.5 million).
- For the two transactions that do not provide postcode- and town-level data, concentrations in Madrid are 11.3% and 13%, respectively, while concentrations in Castilla y Leon and Castilla-La Mancha are each below 4%. These concentrations are broadly comparable with those of the six portfolios included in the more granular review, and the proportion of each pool located in the specific wildfire-affected localities is likely to be significantly more limited.
- Across all eight portfolios, concentrations by autonomous community and province remain broadly diversified. The Madrid province represents the largest concentration.
Click here to view the report.