Fitch Affirms Two French Consumer Loans ABS
OREANDA-NEWS. Fitch Ratings has affirmed two French Consumer Loans ABS transactions:
FCT Ginkgo Compartment Consumer Loans 2013-1
Class A notes affirmed at 'AAAsf'; Outlook Stable
Class B notes affirmed at 'AAsf'; Outlook Stable
Class C notes affirmed at 'Asf'; Outlook Stable
FCT Ginkgo Compartment Debt Conso 2015-1
Class A notes affirmed at 'Asf'; Outlook Stable
Class B notes affirmed at 'BBBsf'; Outlook Stable
FCT Ginkgo Compartment Consumer Loans 2013-1 is a securitisation of general-purpose personal, debt consolidation, home equipment, recreational vehicle, new vehicle and used vehicle loans advanced to French individuals. The loans, originated by Credit Agricole Consumer Finance (CACF, A/Positive/F1), bear a fixed interest rate and are amortising with constant monthly instalments.
FCT Ginkgo Compartment Debt Conso 2015-1 is a securitisation of debt consolidation loans advanced to French individuals, originated by CACF's brand CreditLift via a network of brokers.
Both transactions include a 36-month revolving period, which is expected to end in September 2016 and July 2018 respectively.
KEY RATING DRIVERS
Good performances
The affirmations reflect the adequate performance of the underlying receivables. The transactions' performance in terms of defaults are in line with Fitch's expectations. The cumulated default level was 2.38% for FCT Ginkgo Compartment Consumer Loans 2013-1 as of end of May and 0.44% for FCT Ginkgo Compartment Debt Conso 2015-1 as of end of April.
All the transactions have benefited in the last few months from a significant level of gross excess spread.
Adequate level of credit enhancement
Since FCT Ginkgo Compartment Consumer Loans 2013-1's closing in September 2013, credit enhancement for the class A notes, provided by the subordination of the class B, C and D notes and the general reserve, has been maintained at 37.3%. Credit enhancement for the class B notes remained at 29.8% as of end-May 2016. Credit enhancement for class C notes remained at 21.9%.
Since FCT Ginkgo Compartment Debt Conso 2015-1's closing in July 2015, credit enhancement for the class A notes, provided by the subordination of the class B and C and the general reserve, has been maintained at 23%. Credit enhancement for the class B notes remained at 17% as of end-April 2016.
The transactions also benefit from a general reserve aimed at covering senior fees and interest payments on the rated notes.
RATING SENSITIVITIES
The expected impact of increasing defaults and reducing recoveries by 25% is as follows:
FCT Ginkgo Compartment Consumer Loans 2013-1
Class A Current Rating: 'AAAsf'; Expected Impact: 'AA+sf'
Class B Current Rating: 'AAsf'; Expected Impact: 'AA-sf'
Class B Current Rating: 'Asf'; Expected Impact: 'Asf'
FCT Ginkgo Compartment Debt Conso 2015-1
Class A Current Rating: 'Asf'; Expected Impact: BBBsf'
Class B Current Rating: 'BBBsf'; Expected Impact: 'BBsf'
DUE DILIGENCE USAGE
No third-party due diligence was provided or reviewed in relation to this rating action.
DATA ADEQUACY
Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pools and the transactions. There were no findings that were material to this analysis. Fitch has not reviewed the results of any third-party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring.
Prior to the transactions closing, Fitch reviewed the results of a third-party assessment conducted on the asset portfolio information, which indicated no adverse findings material to the rating analysis.
Prior to the transactions closing, Fitch conducted a review of a small targeted sample of the originator's origination files and found the information contained in the reviewed files to be adequately consistent with the originator's policies and practices and the other information provided to the agency about the asset portfolio.
Overall, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable.
SOURCES OF INFORMATION
The information below was used in the analysis.
Transaction reporting provided by Eurotitrisation, as at May 2016, for FCT Ginkgo Compartment Consumer Loans 2013-1 and, as at April 2016, for FCT Ginkgo Compartment Debt Conso 2015-1
Комментарии