DBRS Places Asset-Backed European Securitisation Transaction Seven S.r.l. Under Review with Negative Implications

DBRS Ratings Limited (DBRS) has today placed Under Review with Negative Implications the provisional rating for Asset-Backed European Securitisation Transaction Seven S.r.l. assigned on May 23, 2012.

The rating actions solely reflect the May 22, 2012 DBRS placement of the Republic of Italy’s long-term foreign and local currency debt rating of A (high) Under Review with Negative Implications. (see press release “DBRS Places Italy’s Ratings Under Review with Negative Implications”).

DBRS will undertake a review to determine the impact of any potential sovereign downgrade on the transaction and will promptly publish updated rating actions that may either result in a confirmation or a downgrade. DBRS employs a case-by-case approach that is jurisdiction-specific and asset-class specific with the risks and protections of each transaction identified and considered. The lower the sovereign rating, the greater relevance and potential impact it has on securitisation ratings due to less favorable macroeconomic conditions, stress factors related to the transaction parties and increased likelihood for unknown events to occur. 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 principal methodologies applicable are:
-European Consumer and Commercial Asset-Backed Securitisations
-Legal 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
-Swap Criteria For European Structured Finance Transactions

These can be found on dbrs.com under Methodologies. 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: Paolo Conti
Rating Committee Chair: Claire Mezzanotte
Initial Rating Date: 5/23/2012