Fitch Downgrades Venus-1 Finance S. r.l. to 'Dsf'; Withdraws Ratings
EUR11.6m class A (IT0004148026) downgraded to 'Dsf' from 'Csf'; rating withdrawn
EUR8.2m class B (IT0004148034) downgraded to 'Dsf' from 'Csf'; rating withdrawn
EUR6.3m class C (IT0004148042) downgraded to 'Dsf' from 'Csf'; rating withdrawn
EUR9.1m class D (IT0004148059) downgraded to 'Dsf' from 'Csf'; rating withdrawn
EUR6.5m class E (IT0004148067) downgraded to 'Dsf' from 'Csf'; rating withdrawn
The transaction is the securitisation of two portfolios of non-performing loans (NPLs), Monviso 1 and Monviso 2, both originated by Sanpaolo IMI Group (now Intesa Sanpaolo S. p.a.; BBB+/Stable) and acquired in 2005 by ABN Amro Bank N. V. (A+/Stable). At the cut-off date in June 2006, the two portfolios comprised 21,911 borrower positions for a total gross book value (GBV) of EUR303.2m. The aggregate portfolio consisted mainly of unsecured NPLs (86% of GBV), with the remaining 14% made up of mortgage secured NPLs.
KEY RATING DRIVERS
The downgrades reflect the principal loss incurred by all tranches. As there is no remaining collateral (or expected recoveries), the ratings of the defaulted tranches have also been withdrawn.
The underlying NPL portfolios (Monviso 1 and Monviso 2) have been sold, yielding a final principal payment of EUR3.6m paid to the senior notes at the July 2016 interest payment date. The remaining notes will be written off at bond maturity in 2019.
RATING SENSITIVITIES
Not applicable.
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 pool and the transaction. 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.
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 provided by Securitisation Services SpA as at August 2016
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