DBRS Downgrades Tagus Leasing No. 1

DBRS, Inc. (DBRS) has today downgraded Class A notes issued by Tagus Leasing No. 1 from AAA (sf) rating to AA (sf). The rating action reflects the following analytical considerations:

•Incorporation of a sovereign related stress component in our stress scenario due to the recent downgrade by DBRS of the Republic of Portugal’s sovereign from A (low) Negative Trend to BBB (high) Negative Trend.
•Increased uncertainty surrounding the impact of macroeconomic variables on collateral performance due to austerity measures taken by the Republic of Portugal.
•Heightened concern with respect to the stress certain transaction parties may come under to perform transaction obligations (servicers and collection account banks domiciled in Portugal).

Please refer to the DBRS Commentary entitled The Effects of Sovereign Risk on Securitisations in the Euro Area by clicking the link below.

The principal methodologies applicable are Master European Structured Finance Surveillance Methodology, 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 this rating include investor remittance reports and performance data relating to the receivables provided by Banco Comercial Portugues, S.A. DBRS considers the information available to it for the purposes of this rating action was of satisfactory quality.

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

Lead Analyst: Mike Babick
Rating Committee Chair: Claire Mezzanotte
Initial Rating Date: 10 February 2011