TEXT - S&P rates Globaldrive Auto Receivables 2012-A

Tue Nov 13, 2012 1:26pm EST

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OVERVIEW

     -- We have assigned our preliminary credit ratings to Globaldrive Auto 
Receivables 2012-A's class A and B euro-denominated asset-backed floating-rate 
notes. At the same time, Globaldrive 2012-A will issue unrated class C 
fixed-rate notes.
     -- Globaldrive 2012-A securitizes a portfolio of auto loan receivables, 
which the German branch of FCE Bank originated in the ordinary course of its 
business. 
  
FRANKFURT (Standard & Poor's) Nov. 13, 2012--Standard & Poor's Ratings 
Services has assigned its preliminary credit ratings to Globaldrive Auto 
Receivables 2012-A B.V.'s (Globaldrive 2012-A) class A and B euro-denominated 
asset-backed floating-rate notes. At the same time, Globaldrive 2012-A will 
issue unrated class C fixed-rate notes (see list below).

All of the loans in the pool are fully amortizing, but 76.5% of the pool 
comprises loans that have a large balloon payment at maturity. The rated notes 
will be credit enhanced through a combination of subordination, a cash 
reserve, and excess spread. A fixed- to floating- interest rate swap with HSBC 
(AA-/Negative/A-1+) will mitigate the interest rate mismatch between assets 
and liabilities. 

RATING RATIONALE

Sector outlook.
The German economy is still performing reasonably well despite the signs of a 
renewed recession in the Eurozone area (see "The Eurozone's New 
Recession--Confirmed," published on Sept. 25, 2012). However, waning demand 
for passenger vehicles in Europe is putting pressure on the German automotive 
sector and may well affect collateral values. Still, we expect overall GDP 
growth of 1.2% and a decrease in unemployment to 5% in 2013. In our view, 
unemployment is one of the key drivers of performance in consumer credit 
portfolios. 

Operational risk.
FCE Bank is an experienced originator in several jurisdictions in the European 
securitization market. Our ratings on the class A and B notes reflect our 
assessment of the company's origination policies, as well as our evaluation of 
FCE Bank's ability to fulfil its role as servicer under the transaction 
documents. 

Credit risk.
We have used performance data from FCE Bank's loan portfolio and from previous 
transactions to analyze credit risk. In comparison to Globaldrive 2011-A, we 
reduced our baseline default expectations but also reduced our expected 
recovery rates to reflect changes in the macroeconomic environment. Following 
our analysis of credit risk in the transaction, we expect to see around 2.6% 
of defaults in the securitized pool This is the baseline default expectation, 
and is based on the data provided for the portfolio as per the first sentence 
of the paragraph. We have analyzed credit risk by applying our European 
consumer finance criteria (see 
""here
=5568498&rev_id=2&sid=989306&sind=A&"," published on March 10, 2000).
Counterparty risk.

Our ratings on the class A and B notes also consider that the the replacement 
mechanisms implemented in the transaction documents adequately mitigate 
counterparty risk exposure in the transaction. We analyzed these counterparty 
risks through our counterparty criteria (see "Counterparty And Supporting 
Obligations Methodology And Assumptions," published on May 31, 2012).

Legal risk.
In our opinion, a EUR15.5 million commingling reserve (funded at closing), which
can be increased to EUR25.49 million, fully mitigates commingling risk in the 
transaction. We have also analyzed potential set-off and termination risks in 
contracts with servicing components, and found the risk to be negligible. We 
consider the issuer to be a bankruptcy-remote entity in line with our European 
legal criteria and have received comfort that the sale of the assets would 
survive the insolvency of the seller (see "European Legal CriteriaRELATED CRITERIA AND RESEARCH 

     -- Presale: Globaldrive Auto Receivables 2012-A B.V., Nov. 13, 2012 
     -- The Eurozone's New Recession--Confirmed, Sept. 25, 2012
     -- Counterparty Risk Framework Methodology And Assumptions, May 31, 2012
     -- European Structured Finance Scenario And Sensitivity Analysis: The 
Effects Of The Top Five Macroeconomic Factors, March 14, 2012
     -- Global Structured Finance Scenario And Sensitivity Analysis: The 
Effects Of The Top Five Macroeconomic Factors, Nov. 4, 2011
     -- Principles Of Credit Ratings, Feb. 16, 2011
     -- Methodology: Credit Stability Criteria, May 3, 2010
     -- Scenario Analysis: Gross Default Rates and Excess Spread Hold the 
Answer to Future European Auto ABS Performance, May 12, 2009
     -- European Legal Criteria For Structured Finance Transactions, Aug. 28, 
2008
     -- European Consumer Finance Criteria, March 10, 2000
     -- European Auto ABS Index Report, published quarterly

RATINGS LIST

Class             Prelim.          Prelim.
                  rating            amount

Globaldrive Auto Receivables 2012-A B.V. 
EUR561.90 Million Asset-Backed Fixed- And Floating-Rate Notes

A                 AAA (sf)           500.1
B                 AA (sf)             30.9
C                 NR                  31.0

NR--Not rated.
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