(The following statement was released by the rating agency)
Dec 04 - Fitch Ratings says that Fondo de Titulizacion del Deficit del Sistema Electrico, FTA (FADE)’s ratings (‘BBB’/Negative) will not be affected by the Series 13 upcoming issuance of EUR1750m.
The notes’ current ratings are as follows:
Series 1 (ISIN ES0378641007) ‘BBB’; Outlook Negative
Series 2 (ISIN ES0378641015) ‘BBB’; Outlook Negative
Series 3 (ISIN ES0378641023) ‘BBB’; Outlook Negative
Series 4 (ISIN ES0378641031) ‘BBB’; Outlook Negative
Series 5 (ISIN ES0378641049) ‘BBB’; Outlook Negative
Series 10 (ISIN ES0378641098) ‘BBB’; Outlook Negative
Fitch has been informed by FADE’s management company (Titulizacion de Activos SGFT, SA, TdA ) of the Series 13 issuance, which also benefit from the full government guarantee and pays a fixed annual coupon rate of 4.00% until its scheduled maturity dates on 17 December 2015.
All FADE series are fully guaranteed by the Spanish government up to a maximum of EUR22.0bn and hence the ratings are credit-linked to the Long-term Issuer Default Rating (IDR) of Spain (‘BBB’/Negative/‘F2’) such that any change in the sovereign IDR is likely to lead to a change in the rating of the bonds. As the terms of the guarantee remain unaltered, the expected issuance has no rating impact on the outstanding series 1, 2, 3, 4, 5 and 10 FADE bonds.
FADE bonds are backed by the outstanding electricity tariff deficit credit rights in Spain that have not yet been securitised through other securitisation platforms, and is able to issue different series of bonds up to the current programme limit of EUR22bn subject to certain conditions in the programme documents. Each series can have different terms, such as different maturity dates and interest rates. However, it is a condition under the programme documentation that all the bonds issued are fully guaranteed by the Spanish government.
FADE has a total EUR13.49bn of bonds outstanding to date. This will increase to EUR15.24bn after the Series 13 issuance, which is expected to take place on 7 December 2012.