DBRS Extends its Review on the Class A Notes issued by UBI SPV BPA 2012 S.r.l.

DBRS Ratings Limited (“DBRS”) has today extended the Under Review with Negative Implications on the EUR 709,800,000.00 Class A Notes issued by UBI SPV BPA 2012 S.r.l. (the “Issuer”). The current rating is A (low) (sf).

The transaction is a cash flow securitisation collateralised by a portfolio of bank loans to Italian Small and Medium Sized Enterprises (“SMEs”), which were originated by Banca Popolare di Ancona S.p.A. (“BPA”), part of the UBI Banca group. Unione di Banche Italiane S.c.p.A. (“UBI Banca”) owns approximately 92.93% of BPA. The rating on the Class A Notes addresses the timely payment of interest and ultimate payment of principal payable on or before the Final Maturity Date in October 2057.

BPA acts as the Originator, Sub-Servicer, Subordinated Loan Provider, PDL Subordinated Loan Provider and Set-Off Subordinated Loan Provider. UBI Banca is the Servicer, Italian Account Bank and Calculation Agent. The Bank of New York Mellon, London Branch acts as the English Account Bank and Cash Manager, while the Bank of New York Mellon, (Luxembourg) S.A., Italian Branch is the Paying Agent. BNY Mellon Corporate Trustee Services Limited acts as Representative of Noteholders.

The rating was placed Under Review with Negative Implications on 27 February 2014, while determining the impact of an amendment by BPA to slightly revise the specific criteria to acquire new loans during the reinvestment period of the transaction and the cash reinvestment back into performing collateral. The rating will remain Under Review with Negative Implications as the impact of this action is assessed. For more details, please refer to: http://www.dbrs.com/research/265499/dbrs-confirms-removes-from-ur-dev-and-places-ur-neg-rating-on-class-a-notes-of-ubi-spv-bpa-2012-s-r-l.html

Notes:
All figures are in Euros unless otherwise noted.

The principal methodology applicable is “Rating CLOs Backed by Loans to European Small and Medium Sized Enterprises (SMEs)”, which can be found on the DBRS website under Methodologies at http://www.dbrs.com/about/methodologies. Other methodologies and criteria referenced in this transaction are listed at the end of this press release.
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” on: http://www.dbrs.com/industries/bucket/id/10036/name/commentaries/

The sources of information used for this rating include the parties involved in the rating, including but not limited to the Originator, the Issuer and their agents.

DBRS considers the information made available to it for the purposes of providing this rating to have been of satisfactory quality.

DBRS does not audit the information it receives in connection with the rating process, and it does not and cannot independently verify that information in every instance.

As this is an extension of the Under Review with Negative Implications status, sensitivity analysis is not applicable.

The previous rating action on this transaction took place on 27 February 2014, when the rating of the Class A Notes was placed Under Review with Developing Implications.

Information regarding DBRS ratings, including definitions, policies and methodologies are available on www.dbrs.com

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

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.

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

Initial Lead Analyst: Simon Ross
Initial Rating Date: 30 October 2012
Initial Rating Committee Chair: Jerry Van Koolbergen

Lead Surveillance Analyst: Alfonso Candelas

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The rating methodologies and criteria used in the analysis of this transaction can be found at: http://www.dbrs.com/about/methodologies

“Legal Criteria for European Structured Finance Transactions”
“Rating CLOs Backed by Loans to European Small and Medium-Sized Enterprises (SMEs)”
“Rating Methodology for CLOs and CDOs of Large Corporate Credit”