DBRS Ratings Limited Assigns Final Ratings to Adriano Lease Sec. S.r.l.

DBRS Ratings Limited (DBRS) has today assigned final ratings of AAA (sf) to the Series A Asset-Backed Floating Rate Notes due 2041 issued by Adriano Lease Sec. S.r.l. The Notes are backed by a portfolio of monetary claims and other connected rights arising under financial lease contracts governed by Italian law granted by Leasint S.p.A. to Italian corporate entities (mainly small and medium size enterprises).

The 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, an amortising cash reserve and excess spread.
•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 credit quality of the collateral and the ability of the Servicer to perform collection activities on the collateral.
•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.
•The incorporation of a sovereign related stress component in our stress scenario due to the recent downgrade by DBRS of the Republic of Italy’s sovereign from AA (low) Negative Trend to A (high) Negative Trend.

Note:
All figures are in Euro unless otherwise noted.

The main applicable methodologies are European Consumer and Commercial Lease ABS and 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 Banca IMI S.p.A. in its capacity as arranger for the transaction on the basis of data provided by Leasint S.p.A., and DBRS considers the information available to it for the purposes of providing these ratings was of satisfactory quality.

This is the first DBRS rating on this financial instrument.

This is a newly created financial instrument.

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

Ratings assigned by DBRS Ratings Limited are subject to EU regulations only.

Lead Analyst: Bruno Franco, Senior Vice President
Rating Committee Chair: Claire Mezzanotte
Initial Rating Date: 29 December 2011