DBRS Confirms and Downgrades Ratings on Foncaixa Leasings 1, FTA

DBRS, Inc. (DBRS) has downgraded the Series A2 notes from AAA (sf) to ‘A’ (high) (sf) and confirmed the ratings on the Series A1, Series B and Series C notes issued by Foncaixa Leasings 1, FTA. Additionally, DBRS has removed all ratings from Under Review with Negative Implications.

The rating action reflects the following analytical considerations:

• The impact of the 8 August 2012 downgrade of the Kingdom of Spain from ‘A’ (high) Under Review Negative to ‘A’ (low) Negative Trend (see “DBRS Downgrades Spain’s Rating to ‘A’ (low) with Negative Trend”), including the incorporation of a sovereign related stress component related to the ‘A’ (low) Negative Trend rating.
• Upon incorporation of the sovereign related stress component, the transaction is performing within DBRS expectations and available credit enhancement for the notes is sufficient to cover DBRS stressed assumptions.
• CaixaBank, S.A. is the account bank in this transaction. As such, the bank does not meet the minimum institution rating necessary for the highest rated security to be rated AAA (sf) in accordance with our Legal Criteria for European Structured Finance Transactions. CaixaBank, S.A. has not taken any of the remedial actions specified in the criteria, therefore DBRS has downgraded Series A2 from AAA (sf) to ‘A’ (high). Series A1 notes are confirmed at AAA (sf) since they are expected to be imminently paid in full on the December 20, 2012 payment date.
• The downgrade of the Series A2 notes was not the result of portfolio performance issues.

Note:
All figures are in Euros (€) unless otherwise noted.

The principal methodologies applicable are:
• Master European Structured Finance Surveillance Methodology
• 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 Structured Finance Servicers
• Unified Interest Rate Model Methodology for European Securitisations

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 CaixaBank, S.A. DBRS considers the information available to it for the purposes of providing this rating confirmation was of satisfactory quality.

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

This credit rating has been issued outside the European Union (EU) and may be used for regulatory purposes by financial institutions in the EU.

This rating is endorsed by DBRS Ratings Limited for use in the European Union.

Lead Analyst – Lain Gutierrez
Rating Committee Chair – Chuck Weilamann
Initial Rating Date: June 16, 2011
Most Recent Rating Update: May 25, 2012