DBRS Ratings Limited Assigns Provisional Ratings to Bonds of FTA Santander Financiacion 5

DBRS Ratings Limited (DBRS) has today assigned provisional ratings of AAA (sf) to the Series A and BBB (sf) to the Series B Bonds issued by Fondo de Titulizacion de Activos Santander Financiacion 5. The Bonds are backed by a portfolio of consumer loans originated by Banco Santander, SA.

The provisional ratings are 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 for Series A, excess spread and a reserve fund. Credit enhancement levels are sufficient to support the ratings assigned.
•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’ financial strength and capabilities with regards to originations, underwriting and servicing.
•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.

Note:
All figures are in Euro unless otherwise noted.

The principal methodologies applicable are Rating European Consumer Asset-Backed Securitisations and the Legal Criteria for European Structured Finance Transactions, which can be found on our website under Methodologies. Readers should also consider the DBRS commentary The Effect of Sovereign Risk on Securitisations in the Euro Area.

The sources of information used for these ratings include performance data relating to the receivables provided by Banco Santander, SA and by Santander de Titulizacion, SGFT SA, the management company for FTA Santander Financiacion 5. DBRS considers the information available to it for the purposes of providing these ratings was of satisfactory quality.

These ratings concern newly issued financial instruments. These are the first DBRS ratings on these financial instruments.

For additional information on this rating, please refer to the linking document located below.

Lead Analyst: Gareth Levington, Senior Vice Presidentt
Rating Committee Chair: Claire Mezzanotte
Initial Rating Date: 20 June 2011