TEXT - Fitch affirms Caja Ingenieros TDA 1 FTA

Fri Dec 14, 2012 2:25pm EST

Related Topics

(The following statement was released by the rating agency)
    Dec 14 - Fitch Ratings has affirmed Caja Ingenieros TDA 1, FTA and removed
it from Rating Watch Negative (RWN), as follows:

Class A2 (ISIN ES0364376014): affirmed at 'AA-sf'; Off RWN; Outlook Negative
Class B (ISIN ES0364376022): affirmed at 'A+sf'; Off RWN; Outlook Stable
Class C (ISIN ES0364376030): affirmed at 'BB+sf'; Outlook Stable

Fitch placed the class A2 and B notes on RWN on 16 July 2012 following the 
downgrade of Banco Bilbao Vizcaya Argentaria (BBVA; 'BBB+'/Negative/'F2'), which
acted as the account bank in the transaction. Fitch has been informed that on 11
October 2012 the account bank was transferred to Barclays plc ('A'/Stable/'F1'),
which under Fitch's criteria is deemed eligible to perform such duties and for 
this reason the agency removed the RWN.

The affirmation is a result of stable asset performance and sufficient credit 
enhancement available to the rated notes. 

To date, arrears levels have been low. As of October 2012, loans in arrears by 
more than three months stood at 0.34% of the current pool balance. The issuer 
has not reported any defaults (defined as loans in arrears by more than 12 
months) to date.

The deleveraging of the portfolio has led to an increase in the credit 
enhancement levels for the rated notes, which is provided by subordination and a
fully funded reserve fund. Given the low pipeline of late stage arrears, Fitch 
expects gross excess spread to be sufficient to provision for defaults in the 
upcoming payment dates and therefore no reserve fund draws are expected. Note 
amortisation is sequential and is expected to remain so in the near future. As a
result, the credit enhancement of the notes is expected to continue to increase.

 (Caryn Trokie, New York Ratings Unit)
FILED UNDER: