DBRS Assigns Ratings to IM GRUPO BANCO POPULAR LEASING 2, FTA

DBRS Inc., (DBRS) has assigned the following ratings to notes issued by IM GRUPO BANCO POPULAR LEASING 2, FTA

-- € 1,275 million Series A rated AAA (sf)
-- € 225 million Series B rated A (sf)

The receivables securitised in the transaction consist of obligations arising under financial leases to Spanish small and medium sized enterprises and large corporates. The leases were originated by Banco Popular Español, S.A. (“Banco Popular”).

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

•The transaction’s capital structure and the form and sufficiency of available credit enhancement.
•Relevant credit enhancement in the form of subordination, a reserve fund and excess spread. Credit enhancement levels are sufficient to support DBRS projected expected cumulative net loss (CNL) assumption under various stress scenarios for each Series of notes issued by IM GRUPO BANCO POPULAR LEASING 2, FTA
•Banco Popular’s 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.
•The ability of the transaction to withstand stressed cash flow assumptions and repay investors according to the terms of the transaction documents.
•The legal structure and presence of legal opinions addressing the assignment of the leases to the issuer and the consistency with the DBRS Legal Criteria for European Structured Finance Transactions.

Note:
All figures are in Euros unless otherwise noted.

The applicable methodologies are Rating European Consumer and Commercial Asset-Backed Securitisations, Legal Criteria for European Structured Finance Transactions and the Unified Interest Rate Model for European Securitisations, 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 this rating include performance data relating to the receivables provided by Banco Popular. DBRS considers the information available to it for the purposes of providing this rating was of satisfactory quality.

These ratings concern newly issued financial instruments.

This is the first DBRS rating on these financial instruments.

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

Lead Analyst: Lain Gutierrez, Senior Vice President
Rating Committee Chair: Claire Mezzanotte
Initial Rating Date: June 20, 2011