OREANDA-NEWS.  Fitch Ratings has assigned Success 2015 B.V.'s EUR230.9m class A notes the following final rating:

EUR230.9m class A asset-backed floating rate notes (ISIN: XS1317727698), due October 2029: 'AAAsf'; Stable Outlook

EUR94.4m class B asset-backed floating rate notes (ISIN: XS1317727938), due October 2029: not rated

The ratings are based on Fitch's assessment of the originators' origination and servicing procedures, Fitch's expectations of asset performance, the available credit enhancement (CE), and the transaction's legal structure.

This transaction is a securitisation of receivables from lease contracts with Austrian commercial and consumer clients, originated by UniCredit Leasing (Austria) GmbH (UCLA) and its subsidiaries, which are part of UniCredit Group. The range of leased objects can be divided into two main asset categories: vehicles and equipment, both including different asset types (mainly cars, trucks and trailers and production and construction equipment).

KEY RATING DRIVERS
Although residual values are also securitised, credit risk is the primary risk. Fitch observes that the performance of the two main asset categories differs and has derived individual default and recovery assumptions for each category. The agency derived a default base case of 7% for 'equipment' and 3% for 'vehicles'. This resulted in a weighted average (WA) base case default rate of 4.8% for the total worst-case portfolio. This is commensurate with other lease equipment transactions rated by Fitch.

The risk of the portfolio composition changing during the revolving period is addressed by a worst-case portfolio, constructed by the agency based on the portfolio limits. As performance triggers stopping the revolving period are weaker than in comparable transactions, Fitch assumed defaults from the revolving period.

The portfolio's industry and obligor concentrations are higher than in a typical ABS transaction. Fitch applied its ABS rating criteria to derive the default assumptions and then back-tested the results using its SME CLO approach to determine whether these concentrations lead to additional default stresses. The impact of the concentrations was limited. Portfolio limits ensure a certain granularity during the revolving period.

No swap is in place to hedge the risk arising from the different base on which notes and assets pay interest. Fitch considered the potential mismatch in its cash flow modelling.

UCLA acts as servicer of the leases. The transaction benefits from an appointed back-up servicer (UniCredit Bank Austria AG) from closing. Given both servicer and back-up servicer belong to the same group, a joint insolvency may result in a disruption of the servicing process. However, a liquidity reserve reduces payment interruption risk.

RATING SENSITIVITIES
Fitch tested the rating sensitivity of the notes to various scenarios, including an increase in the base case default rate and/or a decrease in the base case recovery rate for the portfolio. The model-implied sensitivities indicate that an increase in the base case default rate by 50% together with a decrease in the base case recovery rate by 50% may result in a downgrade of the class A notes, to 'A+sf'.

TRANSACTION CHARACTERISTICS
The transaction has a revolving period of up to three years. After the end of the revolving period, the notes will amortise sequentially.

The initial portfolio has a total balance of EUR325.2m and includes 16,406 lease contracts to 12,495 lessee groups. The largest lessee group makes up 0.5% and the 10 largest lessee groups 5% of the total portfolio balance. Consumer clients amount to 26.5% and commercial clients to 73.5% of the total portfolio balance. Given the revolving period, the agency analysed the transaction based on a worst-case portfolio.

The title to the vehicles remains with the originator which is common under Austrian law, given that the lessees would need to be notified otherwise. The originator holds the vehicle title on trust (Treuhand) for the benefit of the issuer. Due to this beneficial ownership, the assets would not fall into the insolvency estate of the seller. This transaction relies on a trust arrangement between the issuer and the originator, allowing the issuer to separate the leased assets from the originator's insolvency estate in case of the originator's insolvency.

A new issue report, including further information on transaction related stress, key rating drivers and rating sensitivities, as well as material sources of information that were used to prepare the rating, is available at www.fitchratings.com.

DUE DILIGENCE USAGE
Fitch was provided with a third party asset portfolio assessment in relation to this rating action.

DATA ADEQUACY
Fitch reviewed the results of the third party assessment conducted on the asset portfolio information, which indicated no adverse findings material to the rating analysis. Fitch believes the sample size and relevance of the tested fields suggest the data provided by the originator for assigning the ratings was of acceptable quality.

Fitch also conducted a review of a small targeted sample of UCLA'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 asset pool 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:
- Lease-by-lease information, stratifications and amortisation profile for the initial transaction portfolio as at 07 October 2015.
- Dynamic quarterly delinquency data for the period from March 2010 to December 2014, split for the main asset categories: 'equipment' and 'vehicles'.
- Half-annual static default data (by defaulted amount and by number of defaults) for the period 1H10 until 2H14, split for the two main asset categories: 'equipment' and 'vehicles'.
- Quarterly recovery vintage data for the period from 1Q10 to 1Q15, split for the two main asset categories: 'equipment' and 'vehicles'.
- Quarterly prepayment data for the period from 1Q10 to 4Q14, split for the main asset categories: 'equipment' and 'vehicles'.