DBRS Ratings Limited Assigns Final Ratings to Rayo Finance Ireland (No.1) Limited – Series 2005

DBRS Ratings Limited (DBRS) has today assigned final ratings of AA(high) (sf) to the Series 5 floating rate Notes issued by Rayo Finance Ireland (No.1) Limited. The Notes are backed by 16.47% of the right to compensation for the income deficit in the settlement of some regulated activities in the Spanish electricity sector between 1 January 2005 and 31 December 2005. The Originator of the Transaction is Santander, SA (“Santander”) who transferred the Compensation Entitlement to the SPV on 20 January 2012.

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

•The legal structure, the assessment of a satisfactory legal and regulatory framework and presence of legal opinions addressing the existence, validity and assignment to the issuer of the assets;
•The consistency with the DBRS Legal Criteria for European Structured Finance Transactions and the DBRS Spanish 2005 Electricity Tariff Methodology;
•The transaction parties’ financial strength and capabilities with regards to their respective roles.

Notes:
All figures are in Euro unless otherwise noted.

The principal methodologies applicable are:
•Spanish 2005 Electricity Tariff Methodology
•Legal Criteria for European Structured Finance Transactions
•Unified Interest Rate Model Methodology for European Securitisations

The sources of information used for this rating include by JP Morgan Securities Ltd in its capacity as arranger and Santander S.A. in its capacity as originator. DBRS considers the information available to it for the purposes of providing this rating was of satisfactory quality.

This rating involves a securitization of electricity tariff deficit for which historical data is limited.

This rating concerns a newly issued financial instrument.

This is the first DBRS rating on this financial instrument.

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

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

Lead Analyst: Paolo Conti
Rating Committee Chair: Claire Mezzanotte
Initial Rating Date: 22 March 2012