DBRS Upgrades Rating to the Obligations A Bonds Issued by FCT Oneycord

DBRS Ratings Limited (DBRS) has today upgraded the €373.5 million Obligations A bonds issued by FCT Oneycord, Compartiment Oneycord 1 (the Bonds) from a rating of AA (low) (sf) to AAA (sf). The bonds are backed by a portfolio of receivables arising from drawings made on revolving loans originated in France by Banque Accord, and were originally rated on April 19th 2011.

DBRS reviewed amendments to the transaction with the primary changes being the extension of the revolving period by a further three years and the removal of the originator’s obligation to repurchase defaulted receivables at face value. In particular the legal implications of the originator’s original undertaking to repurchase defaulted receivables were removed from the analysis.

The rating is based upon a review by DBRS of the following analytical considerations:
• The transaction's capital structure and the form and sufficiency of available credit enhancement in the form of subordination and excess spread.
• The ability of the transaction to withstand stressed cash flow assumptions and repay investors according to the terms of the transaction documents.
• The transaction parties’ 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 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.

Notes:
All figures are in Euros unless otherwise noted.

The principal methodologies applicable are:
• European Consumer and Commercial Asset-Backed Securitisations
• Legal Criteria for European Structured Finance Transactions
• Swap Criteria for European Structured Finance Transactions
• Operational Risk Assessment for European ABS and SME CLO Servicers
• Unified Interest Rate Model Methodology for European Securitisations
• Master European Structured Finance Surveillance Methodology

These can be found on dbrs.com under Methodologies. For a more detailed discussion of sovereign risk impact on Structured Finance ratings, please refer to 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 Banque Accord as well as financial information regarding Banque accord and its parent, Groupe Auchan. DBRS considers the information available to it for the purpose of providing this rating was of satisfactory quality.

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

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

Lead Analyst: Gareth Levington, Senior Vice President
Rating Committee Chair: Claire Mezzanotte
Initial Rating date: 19 April 2011

The lead analyst responsibilities for this transaction have been transferred to Bruno Franco.