DBRS Confirms the Series 5 Notes from Rayo Finance Ireland (No.1) Limited

DBRS Ratings Limited (DBRS) has confirmed the rating of the Series 5 Notes issued by Rayo Finance Ireland (No.1) Limited at ‘A’ (high) (sf). The rating is confirmed following the publication of the updated Spanish 2005 Electricity Tariff Methodology on 9 September 2013.

The methodology concentrates on the securitisation of 2005 electricity tariff receivables under Spanish Law. The predominant focus of the methodology is the legal and regulatory framework in addition to a discussion of the liquidity risks and the parties responsible for mitigating those risks.

In the revised methodology, DBRS updated the data and projections for Spanish electricity tariff deficits and their related funding strategy, as well as the annuities and amounts recovered in respect of the 2005 tariff deficit. No change was made to the maximum notes rating uplift of two notches above Spain’s sovereign rating.

Notes:
All figures are in Euros unless otherwise noted.

The principal methodologies applicable is Spanish 2005 Electricity Tariff Methodology

These can be found on dbrs.com under Methodologies. For a more detailed discussion of sovereign risk impact on Structured Finance ratings, please refer to DBRS commentary “The Effect of Sovereign Risk on Securitisations in the Euro Area”.

The sources of information used for this rating include Santander S.A. as its capacity as originator. DBRS considers the information available to it for the purposes of providing this rating was of satisfactory quality

The most recent rating action on this transaction took place on 20 August 2012, when the rating was downgraded following a downgrade of the local currency sovereign rating of the Kingdom of Spain.

The individual linking document for this transaction is located at http://www.dbrs.com/research/246591/linking-document-rayo-finance-ireland-no-1-limited.pdf

For further information on DBRS’s historic default rates published by the European Securities and Markets Administration (“ESMA”) in a central repository see http://cerep.esma.europa.eu/cerep-web/statistics/defaults.xhtml.

Ratings assigned by DBRS Ratings Limited are subject to EU regulations only.

Initial Lead Analyst: Paolo Conti
Initial Rating Date: 23 March 2012
Rating Committee Chair: Claire Mezzanotte

Lead Surveillance Analyst: Keith Gorman
Rating Committee Chair: Claire Mezzanotte

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