Feb 5 - Fitch Ratings has upgraded 16 Uno Finance S.r.l. (16 Uno Finance)
and affirmed Compagnia Finanziaria 1 S.r.l. Series 2007-1 (Compagnia Finanziaria
2007-1), as follows:
16 Uno Finance:
EUR23.5m Class B notes: upgraded to 'A+sf' from 'BBB-sf'; Outlook Stable
EUR23.3m Class C notes: upgraded to 'BB+sf' from 'BB-sf'; Outlook Stable
Compagnia Finanziaria 1 2007-1:
EUR35.0m Class B notes: affirmed at 'A-sf'; Outlook Stable
EUR47.5m Class C notes: affirmed at 'BB+sf'; Outlook Stable
The upgrade of 16 Uno Finance's notes incorporates the cash injection into the
structure from the originators as well as the available cash, which almost fully
collateralises the class B notes, credited to the issuer's accounts at BNP
Paribas ('A+'/Stable/'F1+'), creating credit dependency on this counterparty for
the class B notes. The affirmation of Compagnia Finanziaria 2007-1 reflects the
portfolio's stabilised performance since the last review in February 2012 as
well as the significant credit enhancement available to the outstanding rated
Both portfolios have been rapidly amortising allowing the class A notes in both
deals to be repaid in full over the past year. The delinquencies and default
trend has not deviated from the agency's updated expectations.
On the June 2012 interest payment date (IPD), the originators injected EUR18.8m
into 16 Uno Finance's cash reserve account. Available cash was immediately
depleted to reduce the outstanding unpaid PDL, which amounted to EUR18.3m (about
33% of the unrated notes balance) as of the December 2012 IPD.
As a consequence of the increased prepayments, since June 2012 16 Uno Finance's
portfolio has been amortising faster than the amortisation schedule defined in
2010 through a documentation amendment. Accordingly, any excess of principal
collections over the amounts needed to meet the contractual amortisation plan
and avoid breaching the lower band of the swap is trapped into the issuer's
accounts and released over the next payment dates. As of December 2012, EUR21.8m
of principal collections was trapped. According to the amortisation schedule,
Fitch expects the class B notes to be repaid in full in the June 2013 IPD while
the class C notes in the September 2014 IPD.
Compagnia Finanziaria 2007-1's cash reserve has been fully depleted since April
2010 with the structure unable to generate enough excess spread to bring the
outstanding PDL to zero (EUR 28.7m or 29.6% of the unrated notes balance as of
October 2012) and replenish the cash reserve.
From a servicing continuity perspective, Fitch is continuing to monitor the
situation regarding the transactions' servicers, Carifin Italia S.p.A. (Carifin,
not rated) and Plusvalore S.p.A. (Plusvalore, not rated), which were placed
under voluntary winding-up by their controlling group, Gruppo Delta S.p.A.
(Delta, not rated). According to the restructuring plan of the Delta group, both
servicers will be replaced by a newco in their current obligations under
transactions' documents. Fitch has been informed that the replacement will occur
at end-February 2013.
In the agency's view, existing mitigants to payment interruption risk are
commensurate with the ratings of the notes, and include: (i) a hot back-up
servicer (UniCredit Credit Management Bank SpA, rated 'RSS1-'/'CSS1-'); (ii)
waterfalls that, despite being separate, allow for principal collections
(including the EUR21.8m set aside for 16 Uno Finance) to be used to cover for
interest shortfalls; and (iii) the newco having already carried out the
necessary due diligence to step-in as servicer.
Compagnia Finanziaria 2007-1 and 16 Uno Finance are the second and third
securitisation of consumer and personal loans receivables originated in Italy by
Carifin and Plusvalore, following Compagnia Finanziaria 1 S.r.l. which was paid
in full on 9 December 2009.
Additional information is available on www.fitchratings.com. The ratings above
were solicited by, or on behalf of, the issuer, and therefore, Fitch has been
compensated for the provision of the ratings.
Sources of information: servicer and payments reports as well as discussions
with the servicers and the newco.
Applicable criteria: "Global Structured Finance Rating Criteria" dated 6 June
2012; "Counterparty Criteria for Structured Finance Transactions" dated 30 May
2012; "EMEA Consumer ABS Rating Criteria" dated 12 July 2012; and "Criteria for
Servicing Continuity Risk in Structured Finance" dated 10 August 2012 are
available at www.fitchratings.com.
Applicable Criteria and Related Research:
Global Structured Finance Rating Criteria
Counterparty Criteria for Structured Finance Transactions
EMEA Consumer ABS Rating Criteria
Criteria for Servicing Continuity Risk in Structured Finance