DBRS Confirms Rating on the Notes Issued by Sagres – STC, S.A. (Pelican SME No. 1) and Removes URNeg

DBRS Ratings Limited (“DBRS”) has today confirmed the rating of A (low) (sf) on the EUR 208,303,453 Class A Notes (the “Notes”) issued by Sagres Sociedade de Titularização de Créditos, S.A. (the “Issuer”) and has removed them from Under Review with Negative Implications.

The transaction is a cashflow securitisation collateralized primarily by a portfolio of bank loans originated by Montepio to Portuguese small- and medium-sized enterprises (“SMEs”). The DBRS rating addresses the Issuer’s ability to make timely payments of interest and ultimate payments of principal on or before the legal final maturity date in July 2036.

The principal methodology applicable is Master European Granular Corporate Securitisations (SME CLOs) which can be found on www.dbrs.com.

The rating actions reflect the November 30th, 2012 DBRS confirmation of the Republic of Portugal’s Long Term Foreign Currency and Long-Term Local Currency ratings at BBB (low) and assignation of Negative Trend to both ratings (see press release “DBRS Confirms Portugal at BBB (low) with Negative Trend”). This concluded the Under Review with Negative Implications for all ratings.

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”, located at http://dbrs.com/research/239786.

The sources of information used for these ratings include parties involved in the rating, including but not limited to Sagres – Sociedade de Titularização de Créditos, S.A., JP Morgan Securities Ltd. and Caixa Económica Montepio Geral. DBRS considers the information available to it for the purposes of providing this rating was of satisfactory quality.

For additional information on DBRS European SME CLOs, please see European Disclosure Requirements, located at http://www.dbrs.com/research/235269.

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

Surveillance Analyst: Alfonso Candelas
Lead Analyst: Simon Ross
Rating Committee Chair: Jerry van Koolbergen
Initial Rating Date: 22 June 2010

Notes:
All figures are in Euros unless otherwise noted.