TEXT-Fitch cuts Foncaixa Consumo 1, FTA class A notes

Wed Nov 21, 2012 11:18am EST

Nov 21 - Fitch Ratings has downgraded Foncaixa Consumo 1, FTA's class A to
'Asf' from 'AA-sf' and removed it from Rating Watch Negative (RWN), as follows:

EUR 2,153m class A notes: downgraded to 'Asf' from 'AA-sf'; removed from RWN;
Outlook Stable;
EUR462m class B notes: affirmed at 'BB+sf'; Outlook Stable

The downgrade of the class A notes follows Fitch's review of counterparty
remedial actions implemented following the downgrade of CaixaBank SA (CaixaBank,
'BBB'/Negative/'F2'). In particular, while CaixaBank will continue acting as
collateral servicer, paying agent, SPV account bank and hedging counterparty in
this transaction, new counterparty triggers have been defined and formalised
within the transaction documents, which are judged by Fitch to sufficiently
isolate counterparty risk commensurate with the ratings.

In particular, Fitch believes the new counterparty triggers of 'BBB'/'F2' are
sufficiently robust to support the current rating 'Asf' of Class A, although
these triggers are marginally outside the 'BBB+'/'F2' definition as per the
agency's counterparty criteria.

The transaction was closed in November 2011. There have not been any material
performance issues to date. The 90+ day delinquency ratio was a low 0.87% as of
September 2012, while cumulative net losses were 0.1%. The overall performance
has been in line with Fitch's expectations.

Fitch will continue to monitor the transaction on a timely basis. More
performance data is available at www.fitchratings.com

Additional information is available at www.fitchratings.com. The ratings above
were solicited by, or on behalf of, the issuer, and therefore, Fitch has been
compensated for the provision of the ratings.

The information used to assess the ratings was provided by GestiCaixa
Titulizacion S.G.F.T.

Applicable criteria, 'EMEA Consumer ABS Rating Criteria', dated 12 July 2012,
'Global Structured Finance Rating Criteria', dated 6 June 2012, 'Counterparty
Criteria for Structured Finance Transactions', dated 30 May 2012, 'Counterparty
Criteria for Structured Finance Transactions: Derivative Addendum', dated 30 May
2012, 'Criteria for Interest Rate Stresses in Structured Finance Transactions',
dated 20 March 2012 are available at www.fitchratings.com.

Applicable Criteria and Related Research:
EMEA Consumer ABS Rating Criteria
Global Structured Finance Rating Criteria
Counterparty Criteria for Structured Finance Transactions
Counterparty Criteria for Structured Finance Transactions: Derivative Addendum
Criteria for Interest Rate Stresses in Structured Finance Transactions
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.