Recipient email addresses will not be used in mailing lists or redistributed.
Use semicolon to separate each address, limit to 20 addresses.
characters you see
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
Don't want to see this again?
Accept our to continue to Moodys.com:
AND SCROLL DOWN!
By clicking “I AGREE” [at the end of this document],
you indicate that you understand and intend these terms and conditions to be
the legal equivalent of a signed, written contract and equally binding, and
that you accept such terms and conditions as a condition of viewing any and all
Moody’s information that becomes accessible to you [after clicking “I AGREE”] (the
“Information”). References herein to “Moody’s” include Moody’s
Corporation, Inc. and each of its subsidiaries and affiliates.
Terms of One-Time Website Use
you have entered into an express written contract with Moody’s to the contrary,
you agree that you have no right to use the Information in a commercial or
public setting and no right to copy it, save it, print it, sell it, or publish
or distribute any portion of it in any form.
acknowledge and agree that Moody’s credit ratings: (i) are current opinions of
the future relative creditworthiness of securities and address no other risk; and
(ii) are not statements of current
or historical fact or recommendations to purchase, hold or sell particular
securities. Moody’s credit ratings and
publications are not intended for retail investors, and it would be reckless
and inappropriate for retail investors to use Moody’s credit ratings and
publications when making an investment decision. No
warranty, express or implied, as the accuracy, timeliness, completeness,
merchantability or fitness for any particular purpose of any Moody’s credit
rating is given or made by Moody’s in any form whatsoever.
3. To the extent permitted by law, Moody’s and its directors,
officers, employees, representatives, licensors and suppliers disclaim
liability for: (i) any indirect, special, consequential, or incidental losses
or damages whatsoever arising from or in connection with use of the
Information; and (ii) any direct or compensatory damages caused to any person
or entity, including but not limited to by any negligence (but excluding fraud
or any other type of liability that by law cannot be excluded) on the part of
Moody’s or any of its directors, officers, employees, agents, representatives,
licensors or suppliers, arising from or in connection with use of the
4. You agree to read [and
be bound by] the more detailed disclosures regarding Moody’s ratings and the
limitations of Moody’s liability included in the Information.
5. You agree that any disputes relating to this agreement or your use of
the Information, whether sounding in contract, tort, statute or otherwise,
shall be governed by the laws of the State of New York and shall be subject to
the exclusive jurisdiction of the courts of the State of New York located in
the City and County of New York, Borough of Manhattan.
Global Credit Research - 28 Feb 2011
EUR 1,365 million original balance of debt securities affected
Milan, February 28, 2011 -- Moody's Investors Service has assigned definitive ratings to Notes issued
by F-E Red S.r.l.:
EUR1365M A Note, Assigned Aaa (sf)
F-E Red S.r.l. is a cash securitization of
lease receivables extended to obligors located in Italy by Fineco Leasing
S.p.A. ("Fineco Leasing"), an Italian
leasing company 100% owned by Unicredit S.p.A.
(Aa3/P-1- "Unicredit"). The transaction is the fourth
public transaction by the same originator.
The transaction initially closed in March 2009 with no Classes rated by
Moody's. The initial Class A notes balance issued at that time
amounted to EUR 1,365 million. The outstanding rated notes
balance as of last payment date in January 2011 amounts to EUR 1,237.6
million. The Class B notes (not rated) amount has remained unchanged
at EUR 340 million. Moody's analysis of the Class A notes
rating is based on their amount after the latest payment date.
The existing EUR 1.6 billion portfolio of underlying assets was
composed of 23,691 contracts granted to 15,594 borrowers,
either Italian professionals or SMEs. Assets are represented by
financial lease receivables belonging to three different pools:
real estate (approx. 69%), equipment (approx.
13%) and motor-vehicles (approx. 18%) as of
31/12/2010. In fact, in February 2011 Fineco Leasing transferred
a further EUR 250 million portfolio, composed of 5,338 lease
contracts granted to 3,966 borrowers, either professional
or SMEs. Approximately half of this portfolio was represented by
motor-vehicles lease contracts, with only 23% being
represented by real estate contracts.
The current total portfolio is made up of 29,029 contracts for 18,714
borrowers. Real estate lease receivables still make up the largest
portion at 63%, with the balance being represented by motor-vehicle
leases (22%) and equipment leases (15%). The large
majority (97.8%) of the lease contracts pay on a monthly
basis. The leases were originated between 2001 and 2010,
with a weighted average seasoning of 30.9 months and a weighted
average remaining maturity of 106.7 months. The interest
rate is floating for 91.8% of the pool. Geographically,
the pool is concentrated in the Northern Italian region of Lombardy (42.6%)
where the originator is actually located, while --
as far as industry concentration is concerned - the "Construction
& Building" sector represents 28% of the pool. While
the "new" portfolio at transfer date (February 2011) did not
include any lease in arrears, the existing portfolio included 4.5%
of delinquent leases and 2.5% of defaulted positions.
The securitised portfolio does not include the so-called "residual
value option", i.e. the installment that the lessee
has the option to pay at the end of the contract to acquire full ownership
of the leased asset.
Moody's notes as credit strengths the granularity of the portfolio,
whose effective number is in excess of 1,500, and the current
static nature of the deal, whose revolving period expired in October
2010. Moody's also underlines that the originator and servicer
of the deal (Fineco Leasing) , although not rated, is part
of Unicredit group (Aa3/P-1). Furthermore, they have
undertaken to appoint a Back Up Servicer as soon as Unicredit is downgraded
below Baa3 or Fineco Leasing ceases to be part of Unicredit group.
On the other hand Moody's notes that the transaction features a number
of credit weaknesses, including the important exposure to the highly
cyclical Construction and Building sector and the rather long weighted
average life of 4 years, in addition to the inclusion of deteriorated
position in the portfolio as outlined above.
Moody's analysis focused primarily on (i) an evaluation of the underlying
portfolio of leases; (ii) historical performance information on both
originator portfolio as well as the previous outstanding transaction launched
by Fineco Leasing and other statistical information; (iii) the credit
enhancement provided by the pool spread, the cash reserve (fully
funded and usable to repay notes principal amount at deal maturity) and
the subordination of the notes; and (iv) the legal and structural
integrity of the transaction. Moody's also took into consideration
the legal uncertainty associated with recoveries on leased assets following
potential bankruptcy of the originator, by running simulations where
it further stressed the recoveries on defaults.
The resulting key assumptions of Moody's analysis for this transaction
are a mean default of 13.2% with a coefficient of variation
of 46% and a stochastic mean recovery rate of 50%.
Moody's used its ABSROM cash-flow model to determine the
potential loss incurred by the notes under each default scenario.
In parallel, Moody's also considered non-modeled risks
(such as counterparty risk).
The principal methodology used in this rating was Multi-pool Financial
Lease-Backed Transactions in Italy, published in June 2006.
Due to: 1) the fact that historical performance data provided (although
extensive) did not cover an entire economic cycle and did not fully capture
the current economic environment, and 2) the nature of the underlying
debtors (SMEs), Moody's complemented the analytical approach with
the approach used for rating of EMEA SME ABS transactions as described
in the Rating Methodology reports "Refining the ABS SME Approach:
Moody's Probability of Default assumptions in the rating analysis of granular
Small and Mid-sized Enterprise portfolios in EMEA", March
2009 and "Moody's Approach to Rating Granular SME Transactions in Europe,
Middle East and Africa", June 2007.
Moody's Investors Service did not receive and take into account
a third party due diligence report on the underlying assets or financial
instruments in this transaction.
The ratings address the expected loss posed to investors by the legal
final maturity of the notes (October 2040). In Moody's opinion,
the structure allows for the timely payment of interest and ultimate payment
of principal on the Class A notes at par on or before the final legal
maturity date. Moody's ratings address only the credit risks
associated with the transactions. Other non-credit risks
have not been addressed, but may have a significant effect on yield
The V Score for this transaction is Medium, which is in line with
the score assignable to the Italian Leasing sector and representative
of the volatility and uncertainty in the Italian Leasing Sector.
Moody's notes that Transaction Complexity is Low/Medium: although
the portfolio is made of several products (auto-vehicle lease,
equipment lease and real estate receivables), the structure is fairly
standard and does not even include -- at current stage - a
revolving period. Back-up Servicer Arrangement is Low/Medium,
Fineco Leasing is 100% by Unicredit (Aa3/P-1) and there
is an undertaking to nominate a Back Up Servicer as soon as Unicredit
is downgraded below investment grade or Fineco Leasing ceases to be part
of Unicredit group. V-Scores are a relative assessment of
the quality of available credit information and of the degree of dependence
on various assumptions used in determining the rating. For more
information, the V-Score has been assigned accordingly in
reports such as "V Scores and Parameter Sensitivities in the Global Consumer
Loan ABS Sectors", published in May 2009 and "V Scores and
parameter Sensitivities in the EMEA Small-to-Medium Enterprise
ABS Sector" published in June 2009.
Moody's Parameter Sensitivities: Moody's principal portfolio model
inputs are Moody's cumulative default rate assumption and the recovery
rate. Moody's tested 9 scenarios derived from different combinations
of mean default rate and recovery rate. Specifically, Moody's
tested for the mean default rate: 13.2% as base case,
14.2% (base case + 1%) and 15.2%
(base case +2%), and for the recovery rate: 50%
as base case, 45% as well as 40%. The model
sensitivity output indicated that Class A would have achieved a Aaa rating
even if the cumulative mean default probability had been as high as 14.2%
and the recovery rate as low as 45% (all other factors being constant).
Moody's Parameter Sensitivities provide a quantitative / model-indicated
calculation of the number of rating notches that a Moody's-rated
structured finance security may vary if certain input parameters would
No previous Moody's ratings were assigned to this transaction.
The rating has been disclosed to the rated entity or its designated agents
and issued with no amendment resulting from that disclosure.
Information sources used to prepare the credit rating are the following:
parties involved in the ratings, public information, and confidential
and proprietary Moody's Investors Service information.
Moody's Investors Service considers the quality of information available
on the issuer or obligation satisfactory for the purposes of assigning
a credit rating.
Moody's Investors Service may have provided Ancillary or Other Permissible
Service(s) to the rated entity or its related third parties within the
three years preceding the Credit Rating Action. Please see the
ratings disclosure page www.moodys.com/disclosures on our
website for further information.
Moody's adopts all necessary measures so that the information it uses
in assigning a credit rating is of sufficient quality and from sources
Moody's considers to be reliable including, when appropriate,
independent third-party sources. However, Moody's
is not an auditor and cannot in every instance independently verify or
validate information received in the rating process.
Please see ratings tab on the issuer/entity page on Moodys.com
for the last rating action and the rating history.
The date on which some Credit Ratings were first released goes back to
a time before Moody's Investors Service's Credit Ratings were fully digitized
and accurate data may not be available. Consequently, Moody's
Investors Service provides a date that it believes is the most reliable
and accurate based on the information that is available to it.
Please see the ratings disclosure page on our website www.moodys.com
for further information.
Please see the Credit Policy page on Moodys.com for the methodologies
used in determining ratings, further information on the meaning
of each rating category and the definition of default and recovery.
Vice President - Senior Analyst
Structured Finance Group
Moody's Italia S.r.l
Frankfurt am Main
MD - Structured Finance
Structured Finance Group
Moody's Deutschland GmbH
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454
Moody's Italia S.r.l
Moody's assigns definitive ratings to notes issued by F-E Red S.r.l.
Corso di Porta Romana 68
No Related Data.
© 2018 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved. CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL, FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.
MOODY’S CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS OR MOODY’S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.
ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.
CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.
All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing the Moody’s publications.
To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.
To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.
NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCH RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.
Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any rating, agreed to pay to Moody’s Investors Service, Inc. for appraisal and rating services rendered by it fees ranging from $1,500 to approximately $2,500,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com
under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”
Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors. It would be reckless and inappropriate for retail investors to use MOODY’S credit ratings or publications when making an investment decision. If in doubt you should contact your financial or other professional adviser.
Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.
MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for appraisal and rating services rendered by it fees ranging from JPY200,000 to approximately JPY350,000,000.
MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.