OREANDA-NEWS. Fitch Ratings has assigned SCF Rahoituspalvelut I Designated Activity Company final ratings as follows:

EUR 338.7m Class A: 'AAAsf'; Outlook Stable
EUR 27.2m Class B: 'AAsf'; Outlook Stable
EUR 5.8m Class C: 'A+sf'; Outlook Stable
EUR 3.8m Class D: 'A-sf'; Outlook Stable
EUR 6.6m Class E: 'BB+sf'; Outlook Stable
EUR 7.3m Class F: Not rated

The transaction is a securitisation of auto loan receivables originated to Finnish individuals and companies by Santander Consumer Finance Oy (SCF Oy), a 100% subsidiary of Norway-based Santander Consumer Bank AS, which is a 100% subsidiary of Santander Consumer Finance, S.A. (A-/Stable/F2).

KEY RATING DRIVERS
Sound Receivables Performance
Default rates have improved significantly since SCF Oy started originations in 2007. In Fitch's view, this is due to improved economic conditions and origination practices. Fitch set a default rate assumption of 1.75%, also taking into account the continued sound performance of previous comparable transactions from this originator.

Fitch has maintained the high stress default multiple of 7.0x for 'AAAsf', which reflects the presence of balloon payments, together with the lower default base case and fairly late default definition.

High Recoveries
The recoveries achieved by SCF Oy are among the highest for rated European auto ABS. Fitch has used a recovery assumption of 70%, which was stressed with a high recovery haircut of 60% for 'AAAsf'. The high haircut reflects a small used car market and a reliance on the government vehicle valuation mechanism in determining the value of repossessed vehicles.

Liquidity Coverage
A liquidity reserve provides adequate liquidity coverage to the class A and B notes. Class C and below do not benefit from the reserve, which means timely payment of interest on the notes may not be achieved in the case of a servicing disruption, constraining their highest achievable rating to 'A+sf'.

Stable Asset Outlook
Fitch's forecast for the Finnish economy is a modest return to growth in 2015, following three years of contraction. Unemployment, which is considered a key driver of asset performance, is expected to peak at 9.5% in 2015, followed by a gradual improvement in 2016 and 2017. The agency nevertheless expects stable auto loan performance in Finland.

RATING SENSITIVITIES
Expected impact on the notes' rating of increased defaults (class A/B/C/D/E):
Current ratings: 'AAAsf'/'AAsf'/'A+sf'/'A-sf'/'BB+sf'
Increase default base case by 10%: 'AAAsf'/'AA-sf'/'Asf'/'A-sf'/'BB+sf'
Increase default base case by 25%: 'AAAsf'/'A+sf'/'A-sf'/'BBB+sf'/'BB+sf'
Increase default base case by 50%: 'AA+sf'/'Asf'/'BBB+sf'/'BBBsf'/'BB+sf'

Expected impact on the notes' rating of reduced recoveries (class A/B/C/D/E):
Current ratings: 'AAAsf'/'AAsf'/'A+sf'/'A-sf'/'BB+sf'
Reduce recovery base case by 10%: 'AAAsf'/'AAsf'/'A+sf'/'A-sf'/'BB+sf'
Reduce recovery base case by 25%: 'AAAsf'/'A+sf'/'Asf'/'BBB+sf'/'BB+sf'
Reduce recovery base case by 50%: 'AAAsf'/'A+sf'/'BBB+sf'/'BBBsf'/'BB+sf'

Expected impact on the notes' rating of increased defaults and reduced recoveries (class A/B/C/ D/ E):
Current ratings: 'AAAsf'/'AAsf'/'A+sf'/'A-sf'/'BB+sf'
Increase default base case by 10%; reduce recovery base case by 10%: 'AAAsf'/'A+sf'/'Asf'/'BBB+sf'/'BB+sf'
Increase default base case by 25%; reduce recovery base case by 25%: 'AAAsf'/'Asf'/'BBB+sf'/'BBBsf'/'BB+sf'
Increase default base case by 50%; reduce recovery base case by 50%: 'AAsf'/'BBBsf'/'BB+sf'/'BBsf'/ B+

DUE DILIGENCE USAGE
No third party due diligence was provided or reviewed in relation to this rating action.

DATA ADEQUACY
Fitch conducted a review of a small targeted sample of SCF Oy's origination files and found the information contained in the reviewed files to be of adequate consistency with the originator's policies and practices and the other information provided to the agency about the asset portfolio. In addition, Fitch has received a third party Agreed-Upon Procedures (AUP) report. Fitch considers the information relied upon for its rating analysis to be adequate and the available data to be sufficiently robust relative to its materiality to the rating.

SOURCES OF INFORMATION
Sources of information used to assign these ratings include the transaction legal documentation, as well as historical performance data and stratifications provided by the originator.

REPRESENTATIONS AND WARRANTIES
A comparison of the transaction's Representations, Warranties & Enforcement Mechanisms to those typical for the asset class is available by accessing the appendix that accompanies the new issue report, dated 29 October 2015 at www.fitchratings.com. In addition refer to the special report "Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions" dated 12 June 2015 available on the Fitch website.