OREANDA-NEWS. Fitch Ratings has affirmed FTA Santander Consumer Spain Auto 2014-1's notes, as follows:

EUR703m class A notes: affirmed at 'Asf'; Outlook Stable
EUR27.4m class B notes: affirmed at 'BBBsf'; Outlook Stable
EUR15.2m class C notes: affirmed at 'BB+sf'; Outlook Stable
EUR14.4m class D notes: affirmed at 'BBsf'; Outlook Stable
EUR38m class E notes: affirmed at 'CCsf'; Recovery Estimate 75%

The transaction is a securitisation of auto loans originated in Spain by Santander Consumer EFC SA, a wholly-owned and fully integrated subsidiary of Santander Consumer Finance SA (A-/Stable/F2), whose ultimate parent is Banco Santander S.A. (A-/Stable/F2).

KEY RATING DRIVERS
Collateral Performance
The affirmation is supported by the stable performance of the underlying collateral over the past 12 months. As of 31 October 2015, arrears over 90 days represented 0.3% of the total portfolio balance. Given the default definition of the transaction (365 days in arrears), no loans have fallen in default. Fitch has maintained its lifetime base case default and recovery assumptions at 5.4% and 32.9%, respectively, given the short time that has passed since closing (under 12 months). Despite the transaction definition, Fitch assumed its base cases considering loans in arrears over 180 days.

Credit Enhancement (CE)
Excess spread provides the first layer of protection against losses, supported by minimum weighted average interest rates on the assets of 7%. Additional CE is available to the class A to C notes from asset overcollateralisation (7.5%, 3.9% and 1.9% as of closing for class A, B and C, respectively) and the cash reserve placed by Santander Consumer EFC SA, which also provides CE to class D (5% as of closing). The transaction features a mechanism that will trap excess spread to provision for defaults.

Fitch does not expect full repayment of the class E notes as the only source of CE is excess spread, which in our view is not sufficient to cover late defaults and class E note interest.

Revolving Period
Since closing in November 2014, portfolio characteristics and concentration levels have remained stable. The negative migration of the portfolio characteristics during the remaining three year revolving period is limited by the eligibility criteria, portfolio limits and early amortisation events. However, the risk of a potential migration to the worst case portfolio during the remaining revolving period has been captured in our analysis.

Counterparty Exposure
The counterparty exposure to the account bank is sufficiently mitigated by the replacement trigger at 'BBB+/F2' to support the ratings. Santander Consumer EFC SA will create a commingling reserve and a liquidity reserve if Santander Consumer Finance, S.A. is downgraded below 'BBB+'/'F2' or if Santander Consumer Finance, S.A.'s equity stake in Santander Consumer EFC SA falls below 95%.

RATING SENSITIVITIES
Classes A, B, C, and D notes sensitivities to default and recovery rates:
Increase default rate base case by 15%: 'A-sf'/'BBB-sf'/'BBsf'/'BB-sf'
Increase default rate base case by 25%: 'BBB+sf'/'BB+sf'/'BB-sf'/'B+sf'
Reduce recovery rate base case recoveries by 25%: 'A-sf'/'BBBsf'/'BBsf'/'BB-sf'

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.

Prior to the transaction 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.

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 Santander de Titulizacion SGFT, S.A. as at 31 October 2015
- Transaction reporting provided by Santander de Titulizacion SGFT, S.A. as at 21 September 2015
- Transaction loan level data from the European Data Warehouse as of 30 September 2015

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 initial new issue report (see FTA, Santander Consumer Spain Auto 2014-1 - Appendix, dated 30 December 2014 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.