(The following statement was released by the rating agency)
Jan 30 - Fitch Ratings has affirmed FCT Infinity 2009-1’s EUR421.2m class A (FR0117129249) ‘Gamma’ Bons a Moyen Terme Negociables (BMTNs) at ‘AAA’ with a Stable Outlook.
The affirmation reflects the continued low leverage and high credit enhancement to the class A notes.
Since the last rating action in January 2012, there has been a full repayment of the EUR186.2m Leipzig loan, the proceeds of which were applied sequentially to pay down the class A notes.
The fact that demand for collateral backed by secondary German retail assets remain weak is evidenced by the lack of any significant asset sales for either the impaired EHE Pool 1A or B loans, which in aggregate account for 50.2% of the total pool balance. EHE Pool B has already breached its asset disposal threshold in October 2012 as set out a year earlier in the extension and restructuring documentation. This weakness in collateral is however mitigated by all principal recoveries flowing sequentially, meaning that the class A notes can accommodate significant loan level losses.
Fitch believes that a note maturity date of November 2019 allows enough time for the more problematic EHE loans to be worked out, whilst the ‘safer’ low leveraged loans will still have three years after their scheduled 2016 maturities to either refinance or sell down assets.
FCT Infinity 2009-1 “Gamma” is a securitisation of a pool of 12 commercial mortgage loans, originated in Germany and France.
Fitch will continue to monitor the performance of the transaction. A performance report will be published shortly on www.fitchratings.com.