KBRA-Rated European RMBS Exposure to 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.
The Spanish government declared a national emergency for the Community of Madrid and Avila Province and subsequently extended the declaration to Toledo Province. Toledo exited the national emergency on 28 July as conditions improved, while the declaration remained in effect in Madrid and Avila.
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.
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