Fitch Withdraws Caixa Penedes FTGENCAT 1 TDA, FTA's Ratings
Class B: 'AA+sf'; Outlook Stable; rating withdrawn
Class C: 'BB+sf'; Outlook Positive; rating withdrawn
The transaction is a granular cash flow securitisation of a pool of secured and unsecured loans granted to Spanish small - and medium-sized enterprises by Caixa Penedes (now part of Banco Mare Nostrum) and serviced by Banco de Sabadell (BdS).
KEY RATING DRIVERS
Fitch is withdrawing the ratings of the class B and C notes issued by Caixa Penedes FTGENCAT 1 TDA, F. T.A., as following a change in the transaction's counterparties Fitch will no longer have sufficient information to maintain the ratings. Accordingly, Fitch will no longer provide ratings or analytical coverage for Caixa Penedes FTGENCAT 1 TDA, F. T.A.
On 12 July 2016, BdS, as the holder of all outstanding notes, voted to move the transaction's reinvestment account from Societe Generale (A/Stable/F1) to itself. By voting the motion, the noteholder is overriding the provisions of the transaction documentation, including the requirement for the reinvestment account bank to have a minimum Short-Term rating of 'F1'.
BdS acts as direct support counterparty as the reinvestment account holds all the funds of the transaction (collections and reserve fund) for the whole quarterly payment period. Since BdS is not rated by Fitch, the agency cannot assess the counterparty risk and can therefore no longer maintain a credit view on the notes issued by Caixa Penedes FTGENCAT 1 TDA, F. T.A.
RATING SENSITIVITIES
Not applicable
USE OF THIRD-PARTY DUE DILIGENCE PURSUANT TO RULE 17G-10
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 pool and the transaction. There were no findings that affected the rating analysis.
Fitch did not undertake a review of the information provided about the underlying asset pool ahead of the transaction's initial closing. The subsequent performance of the transaction over the years is consistent with the agency's expectations given the operating environment and Fitch is therefore satisfied that the asset pool information relied upon for its initial rating analysis was adequately reliable.
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.
-Investor report dated 31 July 2016 provided by TdA
-Regulatory notice dated 12 July 2016 provided by Comision Nacional de Mercado de Valores
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