(The following statement was released by the rating agency)
Dec 13 - Fitch Ratings has assigned FCT Factoring Asset Securitisation Transaction’s (FCT F.A.S.T) notes ‘AAAsf’ ratings as follows:
EUR850m class A1 notes, assigned ‘AAAsf’; Outlook Stable
EUR300m (maximum amount) class A2-1 notes, assigned ‘AAAsf’; Outlook Stable
The ratings are based on Natixis Factor’s (the seller and servicer, not rated and 100% owned by Natixis (‘A+'/Negative/‘F1+')) experience and capabilities as a participant in the French factoring market, the transaction’s dynamic credit enhancement, the interest and fees reserve and the underlying portfolio triggers and performance.
In line with Fitch’s applicable trade receivables criteria, the dynamic credit enhancement is sized on a monthly basis to reflect the underlying performance of the receivables (defaults, re-transfers, dilutions, concentrations) and provided via overcollateralisation. A cash interest and fees reserve sized to cover the senior fees and interest payments due on the notes during the amortisation period is also constituted.
The transaction collection accounts are set-up as specially dedicated accounts, held with Natixis in the name of the issuer. In accordance with French law, such accounts are remote from any bankruptcy proceedings against the seller/servicer.
FCT F.A.S.T is a securitisation of French trade receivables (factoring contracts) originated in France, bought by the issuer from the seller, which in turn, acquires them in the context of factoring contracts with its clients. The transaction has a three-year revolving period, with a maximum note issue amount of EUR1,150m. The securities are asset-backed floating rate notes, whose final maturity will be in June 2016.
A new issue report detailing the transaction’s features and the underlying analysis is available at www.fitchratings.com.
A comparison of the transaction’s representations and warranties to those Fitch considers to be typical for European ABS transactions is available in the appendix “FCT Factoring Asset Securitisation Transaction - Representations and Warranties”, dated 13 December 2012 and available at www.fitchratings.com.
Link to Fitch Ratings’ Report: FCT Factoring Asset Securitisation Transaction