(The following statement was released by the rating agency)
Link to Fitch Ratings' Report: FCT Factoring Asset Securitisation Transactihere
Nov 21 - Fitch Ratings has assigned the notes issued by FCT Factoring Asset
Securitisation Transaction (FCT F.A.S.T) expected ratings as
EUR850m class A1 notes, 'AAAsf(EXP)'; Outlook Stable
EUR m (maximum amount) class A2 notes, 'AAAsf(EXP)'; Outlook Stable
The final ratings are contingent on the receipt of the final transaction
documentation conforming to information already received.
The expected 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 will be 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 will also be constituted.
The transaction collection accounts are set-up as specially dedicated accounts
(SDA), held with Natixis in the name of the issuer. In accordance with French
law, such accounts are remote from any bankruptcy proceedings against the
FCT F.A.S.T is a securitisation of French trade receivables (factoring
contracts) originated in France, which will be bought by the issuer from the
seller, which in turn, will acquire them in the context of factoring contracts
with its clients. The transaction will have a three-year revolving period, with
a maximum note issue amount of EUR[1,150]m. The securities are asset-backed
floating rate notes, whose final maturity will be in June 2016.
A presale 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 21 November 2012 and available at www.fitchratings.com.
(Caryn Trokie, New York Ratings Unit)