A roundup of today's other business news in brief

Fitch adjusts the way it assesses mortgage risk

Ratings agency Fitch has adjusted the way it assesses risk in pools of Irish prime residential mortgages that are used as collateral for structured finance transactions and covered bond programmes.

“The Irish economy and housing market has suffered unprecedented stress in recent years, resulting in a sharp decline in house prices and a significant increase in late stage arrears,” said Alastair Bigley, a senior director at Fitch. The agency estimates peak-to-trough falls of 45 per cent for Irish house prices.

Commerzbank hit by weak trading

Commerzbank posted a worse-than-expected fourth-quarter operating loss, hit by a weak trading result and higher loan-loss provisions. However, the lender gave a brighter outlook for 2010.

Germany’s second largest bank, which is trying to reshape itself from an ill-timed takeover of struggling rival Dresdner Bank, said loan-loss provisions would fall in 2010, and pledged significantly improved group results in 2010.

Commerzbank’s €1.86 billion fourth quarter net loss came as a loss provisions for the quarter widened to €1.32 billion, from €638 million in the same period a year earlier due to its exposure to the weak German economy.

The bank said that its tier 1 capital ratio stood at 10.5 per cent at the end of the fourth quarter.

Commerzbank completed the acquisition of rival Dresdner Bank in January at the height of the fallout from the collapse of US investment bank Lehman Brothers.

The bank said the takeover would continue to weigh on earnings in 2010. – (Reuters)

Newspaper chiefs  seek cost reductions

Executives at Cork-based Thomas Crosbie Holdings yesterday outlined a number of cost-reduction measures that they want to implement at the Irish Examiner and Evening Echo newspapers to representatives of staff.

These include a reduction in expense rates, changes to work practices, a reduction in pension costs for 12 months and a pay pause for 2010.

No job cuts are involved among the 300 staff.

No comment was available yesterday from the NUJ or the Unite trade union.

Harney names two for VHI Healthcare board

Minister for Health Mary Harney has made two new appointments to VHI Healthcare’s board.

Management consultant Seamus Creedon, and Rigney Dolphin group chief executive Celine Fitzgerald, will take up the roles for the next five years.

Mr Creedon was part of the review group appointed by Ms Harney to examine the Irish health insurance market.

VHI Healthcare chairman Bernard Collins welcomed the appointments.

5% rise in Queens pub profits to .48m

Retained profits at The Queens, the Co Dublin pub and restaurant owned by former AIB chief executive Tom Mulcahy, rose by 5 per cent to €481,000 in the year to August 31st, 2009, according to accounts just filed.

Company records for The Queens valued fixed assets of the Dalkey pub at €7.37 million.