RPT-Fitch January SME CLO Compare; 2 New SME CLO Transactions

Fri Jan 3, 2014 7:49am EST

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Jan 3 (Reuters) - (The following statement was released by the rating agency)

Fitch Ratings has published the January edition of its SME CLO Compare. The report is updated on a monthly basis.

On 9 December Fitch rated Piazza Venezia S.r.l - an Italian cash flow securitisation of secured and unsecured loans granted to small and medium-sized enterprises (SMEs) and corporates by Banca Popolare di Vicenza (BPVi, BB+/Negative/B) and its subsidiary Farbanca, which specialises in lending to pharmacists. Fitch assigned 'Asf'; Stable Outlook to class A1 and A2 notes and 'BBBsf'; Stable Outlook to the junior class A3 notes.

On 23 December Fitch rated Bankia PYME I - a Spanish granular cash flow securitisation of a EUR645m static portfolio of secured and unsecured loans granted to Spanish SMEs, micro companies (micros) and self-employed individuals (SEIs). The loans were originated by Bancaja, Bankia (BBB-/Negative/F3) and Caja Madrid. Fitch assigned 'BBBsf' rating to the class A notes. The rating is limited by the rating triggers on the treasury account bank, currently Bankia, set at 'BBB-'/'F3'. The treasury account bank provides credit support to the transaction and is therefore a direct support counterparty. Hence, according to Fitch's Counterparty Criteria, the rating is capped at 'BBB+sf'.

In December, Fitch also reviewed the ratings of seven transactions.

Fitch affirmed the ratings of Empresas Hipotecario TDA CAM 3 FTA based on the transaction's stable performance. The senior notes of Empresas Hipotecario TDA CAM 5 FTA were downgraded by two notches due to an increase in defaulted assets in the portfolio that was not fully offset by deleveraging and a continued rise in 90 days past due arrears.

Fitch placed the senior notes of FTPYME TDA CAM 2, FTA and GC FTPYME Sabadell 4, FTA on Rating Watch Negative to reflect the notes' material payment interruption risk due to exposure to Banco de Sabadell (BB+/Stable/B) which acts as servicer of loans. Substantial declines in the respective reserve funds over the past payment dates due to increased defaults have exposed the notes to the risk of non-timely interest payment in case Banco de Sabadell defaults, particularly since the non-dedicated reserve funds are the only liquidity source.

Fitch affirmed the ratings of two Italian SME transactions - UBI Finance 2 S.r.l and 2012 Popolare Bari SME. The affirmations reflected increased credit enhancement levels for the rated notes and stable performance in line with the agency's expectations.

On 6 December 2013, FCT BS CDN ENT was called and all the notes were paid in full. On 12 December the senior notes of FTA Santander Empresas 1 were paid in full.

In the latest version of the SME CLO Compare, Fitch has included a new Italian SME transaction - BPL Mortgages S.r.l Series 2013. Fitch does not rate the transaction and the data is captured only for monitoring and relative performance analysis.

The report is available at www.fitchratings.com or by clicking the link below.

Link to Fitch Ratings' Report: Fitch SME CLO Compare - January 2014

here

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