DBRS Ratings Limited Assigns Rating to the Obligations A of Oneycord 1

DBRS Ratings Limited (DBRS) has today assigned a rating of AA (low) (sf) to the €373.5 million Obligations A bonds issued by FCT Oneycord, Compartiment Oneycord 1 (the Bonds). The Bonds are backed by a portfolio of mainly credit card receivables originated by Banque Accord in France.

The rating is based upon a review by DBRS of the following analytical considerations:

•The transaction structure and form and sufficiency of available credit enhancement. Credit enhancement is in the form of subordination, excess spread and a reserve fund. The transaction also provides for the originator to repurchase defaulted receivables at face value. Credit enhancement levels are sufficient to support the rating.
•The ability of the transaction to withstand stressed cash flow assumptions and repay investors according to the terms on which they have invested.
•The transaction parties’ capabilities with regards to originations, underwriting and servicing and their financial strength.
•The legal structure and presence of legal opinions addressing the assignment of the assets to the issuer and the consistency with the DBRS Legal Criteria for European Structured Finance Transactions. In particular, the implications of the originator’s undertaking to repurchase defaulted receivables were reviewed.

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.

The sources of information used for these ratings include performance data relating to the receivables provided by Banque Accord as well as financial information regarding Banque Accord and its parent, Groupe Auchan. DBRS considers the information available to it for the purpose of providing this rating was of satisfactory quality.

Following disclosure to Banque Accord of DBRS initial opinion regarding the credit risk of Banque Accord and of the Bonds, Banque Accord and its parent provided material new information about the financial position of Banque Accord and this resulted in a review of DBRS credit opinion of Banque Accord and the Bonds prior to issuance of this rating.

This is the first DBRS rating assigned to these financial instruments.

For additional information on these ratings, please refer to the linking document located below.

Lead Analyst: Gareth Levington, Senior Vice President
Rating Committee Chair: Claire Mezzanotte
Initial Rating Date: 19 April 2011