DBRS Downgrades TAGUS – STC, S.A. (EnergyOn No. 2)

DBRS, Inc. (DBRS) has today downgraded Class A notes issued by TAGUS – SOCIEDADE DE TITULARIZAÇÃO DE CRÉDITOS, S.A. (EnergyOn No. 2) from A (high) (sf) to A (sf). The rating action reflects the following analytical considerations.

Based on the DBRS Portuguese Electricity Tariff methodology, the rating of the above transaction is limited to a three notch increase above the current local currency sovereign rating of the Republic of Portugal. DBRS has recently downgraded Portugal’s sovereign rating from BBB (high) Negative Trend to BBB Negative Trend.

For a description of the DBRS Portuguese Electricity Tariff methodology, please refer to the link below.

Please also refer to the DBRS Commentary entitled The Effects of Sovereign Risk on Securitisations in the Euro Area.

The principal methodologies applicable are Rating Portuguese Electricity Tariff Securitisations, Master European Structured Finance Surveillance Methodology and the DBRS Legal Criteria for European Structured Finance Transactions.

The sources of information used for this rating include parties involved in the rating, including but not limited to investor remittance reports. DBRS considers the information available to it for the purposes of this rating action was of satisfactory quality.

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

Lead Analyst: Chuck Weilamann
Rating Committee Chair: Claire Mezzanotte
Initial Rating Date: 8 April 2011