DBRS Assigns Provisional Ratings to GC Sabadell Empresas 2 and GC Sabadell Empresas 4

DBRS Inc., (DBRS) has today assigned a AA (sf) provisional rating to the Series A2 Notes issued by GC Sabadell Empresas 2 and a AAA (sf) provisional rating to the Series A Notes issued by GC Sabadell Empresas 4. The receivables securitised in both transactions consist of leases relating to real estate, equipment, and vehicles.

The provisional ratings are based upon review by DBRS of the following analytical considerations:

•Transactions’ capital structure and form and sufficiency of available credit enhancement.

•Relevant credit enhancement is in the form of a reserve fund and subordination. Credit enhancement levels are sufficient to support DBRS’s projected expected cumulative net loss (CNL) assumption under various stress scenarios at a AA (sf) standard for the Series A2 Notes issued by GC Sabadell Empresas 2 and at a AAA (sf) standard for the Series A Notes issued by GC Sabadell Empresas 4.

•The ability of the transactions to withstand stressed cash flow assumptions and repay investors according to the terms in which they have invested.

•The transaction parties’ capabilities with respect to originations, underwriting, servicing, and financial strength.

•The credit quality of the collateral and ability of the Servicer to perform collection activities on the collateral.

Note:
All figures are in Euros unless otherwise noted.

The principal methodologies applicable are Rating European Consumer Asset-Backed Securitisations and the DBRS Legal Criteria for European Structured Finance Transactions, which can be found on our website under Methodologies. This is not a newly created financial instrument.

The sources of information used for this rating include performance data relating to the receivables provided by GestiCaixa, Sociedad Gestora De Fondos De Titulizacion S.A and Banco De Sabadell S.A. DBRS considers the information available to it for the purposes of providing this rating was of satisfactory quality.

For additional information on DBRS European ABS ratings, please refer to the linking document located below.

Michael Babick is the lead rating analyst and Claire Mezzanotte is the committee chair.