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I AGREE
28 Oct 2011
Frankfurt am Main, October 28, 2011 -- Moody's Investors Service has today downgraded (i) from Aaa(sf) to Aa2(sf)
the ratings of the class A notes of UBI Finance 2 S.r.l.,
UBI Finance 3 S.r.l., UBI Lease Finance 5 S.r.l.
and 24-7 Finance S.r.l. (Unsecured Consumer
Loans); and (ii) from Aaa(sf) to Aa3(sf) the ratings of the class
A notes of 24-7 Finance S.r.l. (RMBS).
The detailed list of affected ratings can be found at the end of the Ratings
Rationale section.
RATINGS RATIONALE
Moody's downgraded the Class A notes of the following five transactions:
UBI Finance 2 S.r.l., UBI Finance 3 S.r.l.,
UBI Lease Finance 5 S.r.l., 24-7 Finance
S.r.l. (Unsecured Consumer Loans) and 24-7
Finance S.r.l. (RMBS) because after Unione di Banche
Italiane S.c.p.A. ("UBI Banca")
was downgraded to A3 /P-2 on 5 October 2011 (more details on this
rating action can be found at the following link: http://www.moodys.com/viewresearchdoc.aspx?docid=PBC_136445)
the eligible investment definition and (in certain transactions) additional
UBI Banca related aspects, such as the eligilble institution definition,
have been amended. Today's ratings actions concluded the review
of the amended transaction documents.
These rating actions reflect the fact that with the implemented changes
to the transaction documents it is not possible to achieve a Aaa rating
according to Moody's published criteria on "The Temporary
Use of Cash In Structured Transactions: Eligible Investment Guidelines".
Specifically, in UBI Finance 2 S.r.l.,
UBI Finance 3 S.r.l., UBI Lease Finance 5 S.r.l.,
24-7 Finance S.r.l. (Unsecured Consumer Loans)
the latest changes to the transaction documents allow, inter alia,
the issuer to invest the periodic borrower payments as well as other cash
available in the structure in eligible investments for a period of up
to 1 month that bear either a long-term-rating of A3 or
a short-term rating of P-1. According to Moody's
published criteria the highest possible rating that can be achieved based
on this is Aa2. In 24-7 Finance S.r.l.
(RMBS) the trigger for such eligible investments has been amended to A3
or P-2, which slightly increases the linkage between the
notes and the issuer of such eligible investments (e.g.
UBI Banca) compared to the other four transactions affected by this rating
action. Nonetheless, the issuer is only allowed to make investments
into securities rated A3 or P-2 with a maturity of up to 1 month;
this brings the potential level of risk attached to eligible investments
that can be made in 24-7 Finance S.r.l. (RMBS)
close to (though it is still higher than) the level of risk inherent in
the four above mentioned transactions. Ultimately, Moody's
considers the highest achievable rating for the 24-7 Finance S.r.l.
(RMBS) Aa3.
No quantitative key rating assumptions have been changed, and hence,
no sensitivity analysis on this has been performed.
The principal methodology used in rating UBI Finance 2 S.r.l.,
UBI Finance 3 S.r.l., and UBI Lease Finance
5 S.r.l., was "Moody's Approach to Rating
CDOs of SMEs in Europe" published in February 2007. The principal
methodology used in rating 24-7 Finance S.r.l.
(Unsecured Consumer Loans) was "Moody's Approach to Rating Consumer
Loan ABS Transactions" published in July 2011. The principal methodology
used in rating 24-7 Finance S.r.l. (RMBS)
was "Moody's Approach to Rating RMBS in Europe, Middle East,
and Africa" published in October 2009. Please see the Credit Policy
page on www.moodys.com for a copy of these methodologies.
Other Factors used in this rating are described in "The Temporary
Use of Cash In Structured Transactions: Eligible Investment Guidelines"
published in December 2008.
No Model has been used for this rating action.
No Loss and Cash Flow Analysis has been performed as cash flows of the
affected UBI Banca related securitizations are not directly impacted by
the amendments to the transaction documents.
No stress scenarios were performed as no cash flow analysis was performed.
LIST OF AFFECTED SECURITIES
Issuer: 24-7 Finance S.r.l. (RMBS)
....EUR2279.25M A Notes, Downgraded
to Aa3 (sf); previously on Jun 24, 2008 Assigned Aaa (sf)
Issuer: 24-7 Finance S.r.l. (Unsecured
Consumer Loans)
....EUR2128.25M A Notes, Downgraded
to Aa2 (sf); previously on Dec 11, 2008 Assigned Aaa (sf)
Issuer: UBI Finance 2 S.r.l.
....EUR1559.5M A Notes, Downgraded
to Aa2 (sf); previously on Feb 24, 2011 Assigned Aaa (sf)
Issuer: UBI FINANCE 3 S.R.L.
....EUR1863.6M A Notes, Downgraded
to Aa2 (sf); previously on Jul 25, 2011 Assigned Aaa (sf)
Issuer: UBI Lease Finance 5 S.r.l.
....EUR3440.5M A Notes, Downgraded
to Aa2 (sf); previously on Nov 28, 2008 Assigned Aaa (sf)
REGULATORY DISCLOSURES
For ratings issued on a program, series or category/class of debt,
this announcement provides relevant regulatory disclosures in relation
to each rating of a subsequently issued bond or note of the same series
or category/class of debt or pursuant to a program for which the ratings
are derived exclusively from existing ratings in accordance with Moody's
rating practices. For ratings issued on a support provider,
this announcement provides relevant regulatory disclosures in relation
to the rating action on the support provider and in relation to each particular
rating action for securities that derive their credit ratings from the
support provider's credit rating. For provisional ratings,
this announcement provides relevant regulatory disclosures in relation
to the provisional rating assigned, and in relation to a definitive
rating that may be assigned subsequent to the final issuance of the debt,
in each case where the transaction structure and terms have not changed
prior to the assignment of the definitive rating in a manner that would
have affected the rating. For further information please see the
ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.
The ratings have been disclosed to the rated entities or their designated
agent(s) and issued with no amendment resulting from that disclosure.
Information sources used to prepare each of the ratings are the following:
parties involved in the ratings, parties not involved in the ratings,
and confidential and proprietary Moody's Investors Service information.
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in the past six months.
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the lead rating analyst and to the Moody's legal entity that has issued
the rating.
Silvia Baumann
Asst Vice President - Analyst
Structured Finance Group
Moody's Deutschland GmbH
An der Welle 5
Frankfurt am Main 60322
Germany
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454
Thorsten Klotz
MD - Structured Finance
Structured Finance Group
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454
Releasing Office:
Moody's Deutschland GmbH
An der Welle 5
Frankfurt am Main 60322
Germany
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454
Moody's downgrades the Class A notes of: UBI Finance 2 S.r.l., UBI Finance 3 S.r.l., UBI Lease Finance 5 S.r.l., 24-7 Finance S.r.l. (Unsecured Consumer Loans) and 24-7 Finance S.r.l. (RMBS)
No Related Data.
© 2020 Moody's Corporation, Moody's Investors Service, Inc., Moody's Analytics, Inc. and/or their licensors and affiliates (collectively, "MOODY'S"). All rights reserved.
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