DBRS Downgrades Notes issued by TAGUS – STC, S.A. (EnergyOn No. 2)
OtherDBRS, Inc. (DBRS) has today removed the Class A notes issued by TAGUS – SOCIEDADE DE TITULARIZAÇÃO DE CRÉDITOS, S.A. (EnergyOn No. 2) from Under Review with Negative Implications and downgraded the notes from ‘A’ (sf) to ‘A’ (low) (sf). The rating action reflects the following analytical considerations.
Based on DBRS rating 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 to BBB (low) with the Negative Trend maintained (see press release “DBRS Downgrades Portugal to BBB (low) on Deteriorating Growth Outlook”).
For a description of the DBRS Portuguese Electricity Tariff methodology, please refer to the link to the methodology.
Please also 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 Portuguese Electricity Tariff Securitisations 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 located below.
This credit rating has been issued outside the European Union (EU) and may be used for regulatory purposes by financial institutions in the EU
Lead Analyst: Chuck Weilamann
Rating Committee Chair: Claire Mezzanotte
Initial Rating Date: 8 April 2011
Ratings
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