DBRS Confirms the Ratings on Fondo de Titulización del Déficit del Sistema Eléctrico (FADE), F.T.A.

DBRS Ratings Limited (“DBRS”) has reviewed Fondo de Titulización del Déficit del Sistema Eléctrico (FADE), F.T.A. and has confirmed the ratings of the following Series:
• Series 2 at A (low) (sf) Trend Negative
• Series 3 at A (low) (sf) Trend Negative
• Series 4 at A (low) (sf) Negative Trend
• Series 4 – EUR 400mn issued 16 Oct 2013 at A (low) (sf) Trend Negative
• Series 6 at A (low) (sf) Trend Negative
• Series 7 at A (low) (sf) Trend Negative
• Series 8 at A (low) (sf) Trend Negative
• Series 9 at A (low) (sf) Trend Negative
• Series 10 at A (low) (sf) Trend Negative
• Series 11 at A (low) (sf) Trend Negative
• Series 12 at A (low) (sf) Trend Negative
• Series 13 at A (low) (sf) Trend Negative
• Series 14 at A (low) (sf) Trend Negative
• Series 15 at A (low) (sf) Trend Negative
• Series 16 at A (low) (sf) Trend Negative
• Series 16 – EUR 250mn issued 16 Oct 2013 at A (low) (sf) Trend Negative
• Series 17 at A (low) (sf) Trend Negative
• Series 17 – EUR 300mn issued 16 Oct 2013 at A (low) (sf) Trend Negative
• Series 17 – EUR 225mn issued 28 Feb 2014 at A (low) (sf) Trend Negative
• Series 18 at A (low) (sf) Trend Negative
• Series 18 – EUR 125mn issued 28 Feb 2014 at A (low) (sf) Trend Negative
• Series 19 at A (low) (sf) Trend Negative
• Series 20 at A (low) (sf) Trend Negative

The confirmation of the ratings of the above referenced Notes at A (low) (sf) Negative Trend reflects the specific nature and unique structure of this transaction which is recognised by the Spanish government Royal Decree 437/2012.

DBRS ratings of the Notes issued by the FADE programme are based on the obligation of the guarantor, the Kingdom of Spain, to make payment pursuant to the guarantee of the Notes interest and principal up to EUR 26.00 billion. The guarantee can be exercised with regard to any of the series issued by FADE to cover ordinary interest and principal on the Notes. The guarantee in place cannot assure the timely payment of interest and principal on the Notes.

The ratings of the Notes are fully linked to the Sovereign rating of the Kingdom of Spain. DBRS Sovereign Group confirmed the Kingdom of Spain Long-Term Issuer Rating at A (low), Negative Trend (see press release issued on April 11, 2014 “DBRS Confirms the Kingdom of Spain at A (low), Negative Trend).

Fondo de Titulización del Déficit del Sistema Eléctrico (FADE), F.T.A. is a fund created to enable the electricity companies in Spain to sell tariff deficit receivables with different maturities to the Fund and issue series of Notes to be placed in the market.

FADE benefits of EUR 2 billion credit line provided by the Instituto de Crédito Oficial (ICO). The credit line covers for any interest or principal shortfalls on the Notes.

DBRS ratings of the Notes addresses the ultimate distribution of interest and the ultimate distribution of principal on the Notes on or before the Final Maturity date of the Fund.

The Instituto de Crédito Oficial (ICO) is the Treasury Account Bank for the transaction. The DBRS private rating of ICO is at least equal to the Minimum Institution Rating given the rating assigned to the Series of Notes, as described in the DBRS Legal Criteria for European Structured Finance.

Notes:
All figures are in Euro unless otherwise noted.
Methodologies and criteria referenced in this transaction are listed at the end of this press release.

The principal methodology applicable is the “Legal Criteria for European Structured Finance Transactions”. DBRS has applied the principal methodology consistently and conducted a review of the transaction in accordance with the principal methodology.

This can be found on www.dbrs.com at:
http://www.dbrs.com/about/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” on: http://www.dbrs.com/industries/bucket/id/10036/name/commentaries/.

The sources of information used for this rating include reports provided by Titulización de Activos S.G.F.T., S.A. DBRS considers the information available to it for the purposes of providing this rating was 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.

The last rating action on this transaction took place on 18 September 2014, when DBRS discontinued the ratings assigned to the Series 5 Notes.

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

For further information on DBRS 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: David Sanchez Rodriguez
Initial Rating Date: 19 September 2013
Initial Rating Committee Chair: Chuck Weilamann

Lead Surveillance Analyst: Elisa Scalco
Rating Committee Chair: Diana Turner

DBRS Ratings Limited
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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.
• Master European Structured Finance Surveillance Methodology.
• Operational Risk Assessment for European Structured Finance Servicers.