TEXT-S&P assigns ratings to SAECURE 12's class A1 and A2 notes
(The following statement was released by the rating agency)
Dec 05 -
-- We have assigned ratings to the class A1 and A2 notes for SAECURE 12.
-- SAECURE 12 is AEGON's latest securitization of its mortgage loans secured over properties in The Netherlands.
Standard & Poor's Ratings Services today assigned its credit ratings to SAECURE 12 B.V.'s class A1 and A2 residential mortgage-backed floating-rate notes. At the same time, SAECURE 12 issued unrated class B, C, and D notes (see list below).
SAECURE 12 is the latest securitization of mortgage loans originated by two indirect subsidiaries of AEGON Nederland N.V. (AEGON), AEGON Levensverzekering N.V. (AEGON Leven) and AEGON Hypotheken B.V. (AEGON Hypotheken). The collateral comprises performing loans secured on first-ranking (or first- and consecutive-ranking) mortgages over properties in The Netherlands. AEGON services the mortgages originated by both entities.
AEGON Leven and AEGON Hypotheken are wholly-owned indirect subsidiaries of AEGON, one of the leading players in the Dutch market, and offer a full range of insurance, savings, and investment products.
The main features of the transaction are:
-- SAECURE 12 is a repeat transaction for AEGON.
-- The class A1 and A2 notes benefit from 10% credit enhancement, provided via subordinated notes and a cash reserve.
-- Bank Nederlandse Gemeenten N.V. (AAA/Watch Neg/A-1+) is a counterparty to this transaction, providing the issuer accounts and cash advance facility.
-- Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A. (Rabobank International) (AA-/Stable/A-1+) is the interest rate swap provider.
-- This transaction includes construction loans, which in our opinion carry a higher credit risk, which we address in our analysis.
The ratings on SAECURE 12's notes reflect our assessment of the transaction's payment structure and cash flow mechanics, and our cash flow analysis to assess whether the notes will be repaid under stress test scenarios. Another key consideration in our rating analysis is the strong protection for noteholders from a combination of subordination, a cash advance facility, and a reserve fund to cover credit losses and income shortfalls.
RELATED CRITERIA AND RESEARCH
-- New Issue: SAECURE 12 B.V., Dec. 5, 2012
-- The Eurozone's New Recession--Confirmed, Sept. 25, 2012
-- No Pain, No Gain: How The Housing Market Correction Is Affecting Dutch Banks, June 27, 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
-- Methodology And Assumptions: Update To The Cash Flow Criteria For European RMBS Transactions, Jan. 6, 2009
-- European Legal Criteria For Structured Finance Transactions, Aug. 28, 2008
-- A Listing Of S&P's New Actions Aimed At Strengthening The Ratings Process, Feb. 7, 2008
-- Changes To The Treatment Of Potential Set-Off Risk In The Dutch RMBS Market, Sept. 8, 2006
-- Dutch RMBS Market Overview And Criteria, Dec. 16, 2005
-- Cash Flow Criteria For European RMBS Transactions, Nov. 20, 2003
-- Dutch RMBS Index Reports, published quarterly
SAECURE 12 B.V.
Mortgage-Backed Floating-Rate Notes And Unrated Notes
Class Rating Amount (Mil. EUR)
A1 AAA (sf) 302.3
A2 AAA (sf) 1,062.8
B NR 29.4
C NR 73.4
D NR 44.0
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