OREANDA-NEWS. Fitch Ratings has upgraded IM Cajamar Empresas 4, FTA's class B notes and affirmed the class A notes as follows:

Class A (ES0347454003): affirmed at 'A+sf'; Outlook Stable
Class B (ES0347454011): upgraded to 'BB+sf' from 'B+sf'; Outlook Positive

IM Cajamar Empresas 4 is a static, cash flow securitisation of a portfolio of secured and unsecured loans granted to Spanish self-employed individuals and SMEs by Cajas Rurales Unidas, Sociedad Cooperativa de Credito (formerly Cajamar Caja Rural, Sociedad Cooperativa de Credito).

KEY RATING DRIVERS
The upgrade of the class B notes reflects the stable performance of the transaction over the last 12 months and increasing credit enhancement due to deleveraging. Credit enhancement of the class B notes has increased to 27.4% at end-November 2015 from 18.8% at end-October 2014. Delinquencies have remained fairly stable over the last 12 months, in line with Fitch's expectations. Ninety-day delinquencies have increased slightly to 1.46% at end-October 2015, from 1.22% at end-October 2014.

The affirmation of the class A notes reflects the increase of credit enhancement to 88.3% at end-November 2015 from 60.3% at end-October 2014, provided by overcollateralisation and a fully funded reserve fund of EUR94.5m. The maximum achievable rating for the class A notes is capped at 'A+sf' due to the account bank trigger being set at 'BBB+'/'F2' in the transaction documents.

Fitch considers the potential payment interruption that may arise from the exposure to the servicer, Cajas Rurales Unidas, Sociedad Cooperativa de Credito (BB-/Stable/B), to be sufficiently mitigated by the liquidity provided by the fully funded cash reserve. The reserve fund provides liquidity to cover for interest shortfall on the class A notes until they are completely redeemed, and for the class B notes thereafter.

Current defaults have increased to 8.4% at end-October 2015 from 6.3% at end-October 2014, partially due to the amortisation of the portfolio. However, the weighted average recovery rate has increased considerably to 23.7% from 8.4% during the same period and Fitch expects this trend to continue in line with the standard recovery lag in Spain.

Top 10 obligors account for 7% of the outstanding balance and around 50% of the current collateral is located in the region of Andalusia. This concentration risk is addressed in Fitch's analysis.

RATING SENSITIVITIES
Rating sensitivity to increased default rate (DR) assumptions
Class A and B notes
Increase DR base case by 15%: 'A+sf'/'BBsf'
Increase DR base case by 25%: 'A+sf'/'B+sf'

Rating sensitivity to reduced recovery rate (RR) assumptions
Class A and B notes
Reduce RR base case by 25%: 'A+sf'/'BBsf'

Combined rating sensitivity to increased DR and reduced RR
Class A and B notes
Increase DR and reduce RR base case by 20%: 'A+sf'/'B+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.
-Loan-by-loan data provided by InterMoney Titulizacion S.G.F.T., S.A. as at 31 October 2015
-Transaction reporting provided by InterMoney Titulizacion S.G.F.T., S.A. as at 31 November 2015