Feb 7 - Fitch Ratings has affirmed UBI Lease Finance 5's class A notes' as
Class A (ISIN IT0004433253): affirmed at 'A-sf'; Outlook Stable
The affirmation reflects the transaction's stable performance along with the
initial notes amortisation determining an increase in the credit enhancement
which, despite the revolving period having not yet expired, has been the
consequence of the February 2012 restructuring implemented by UBI Banca. This
was aimed at de-linking the senior notes' rating from UBI Banca's Issuer Default
Rating (IDR), including making use of the funds credited in the issuer's debt
reserve account (EUR900.2m) to amortise the notes.
The portfolio's amortisation has reduced the portfolio factor to 86% of the
original portfolio balance. Consequently, credit enhancement for class A has
increased to 52.9% from 36.9% in February 2012. Current defaults are EUR205m and
make up roughly 6% of the current portfolio balance.
Following the recent restructuring implemented by UBI Banca the transaction
benefits from an amount equal to 3.8% of the initial collateral pool balance
deposited in the issuer's debt reserve account as a mitigant for commingling
risk. On the first payment date after the expiry of the revolving period in
April 2013, this amount will be lowered to 1.5% of the senior notes balance, and
the difference will be used to accelerate the amortisation of the senior notes.
UBI Finance 5 S.r.l. is a securitisation of receivables arising from lease
contracts of real estate assets, vehicles and instrumental assets originated and
serviced by UBI Leasing S.p.A. (99% held by UBI Banca, rated
As of February 2012, the transaction's definition of 'eligible investments' was
amended to allow investments between payment dates in assets maturing within 30
days rated up to 'BBB+' and 'F2' and the account bank was transferred from UBI
Banca to Bank of New York Mellon ('AA-'/'F1+'). The amendment to the definition
of eligible investments enables UBI Finance 5 to invest in assets issued by UBI
Additional information is available at 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.
Applicable criteria, 'EMEA Consumer ABS Rating Criteria', dated 12 July 2012;
'Criteria for Servicing Continuity Risk in Structured Finance', dated 10 August
2012; 'Counterparty Criteria for Structured Finance Transactions', dated 30 May
2012 and Global Structured Finance Rating Criteria, dated 6 June 2012 available
Applicable Criteria and Related Research:
EMEA Consumer ABS Rating Criteria
Criteria for Servicing Continuity Risk in Structured Finance
Counterparty Criteria for Structured Finance Transactions
Global Structured Finance Rating Criteria