TEXT-S&P puts on watch neg rtg on Atlante Finance class B & C nts

Wed Apr 18, 2012 6:15am EDT

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-- We have reviewed Atlante Finance in light of increased arrears in some of the more concentrated portions of the underlying portfolio.

-- Following our analysis, we have placed on CreditWatch negative our ratings on the class B and C notes.

-- The class A notes remain on CreditWatch negative for performance and counterparty reasons, pending further analysis of arrears developments after the April 2012 interest payment date.

-- The transaction is originated by Banca Unipol and backed by a mixed portfolio of loans to SMEs and residential loans.

Standard & Poor's Ratings Services today placed on CreditWatch negative its credit ratings on Atlante Finance S.r.l.'s class B and C notes. The class A notes remain on CreditWatch negative (see list below).

On Dec. 21, 2011, we placed our rating on the class A notes on CreditWatch negative for counterparty reasons (see "European ABS CreditWatch Placements Linked To Recent Bank Rating Actions--Dec. 21, 2011"). This followed our Nov. 29, 2011 downgrade of The Royal Bank of Scotland N.V. (RBS; A/Stable/A-1), the transaction's swap and liquidity provider (see "Research Update: Royal Bank of Scotland Long-Term Rating Lowered To 'A' On Bank Criteria Change; S-T Rating Affirmed; Outlook Stable," published on Nov. 29, 2011). In our view, a link exists between our rating on the class A notes and our rating on RBS, because we do not consider the swap and liquidity documents to be in line with our 2010 counterparty criteria (see "Counterparty and Supporting Obligations Methodology and Assumptions," published on Dec. 6, 2010).

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