DBRS Removes the Notes of Leo Consumo 1 S.r.l. from UR-Negative and Places them UR-Developing

DBRS Ratings Limited (DBRS) has today removed the Under Review with Negative Implication and has placed Under Review with Developing Implications the following Notes issued by Leo Consumo 1 S.r.l. (the “Issuer”):
• Series A Notes: BBB (low) (sf) – UR – Dev
• Series B Notes: B (sf) – UR – Dev

The ratings on the Notes were previously placed Under Review with Negative Implications on 13 March 2013 due to the 6 March 2013 downgrade of the Republic of Italy’s long-term and local currency debt to ‘A’ (low) from ‘A’ with both ratings remaining on Negative trend.

The ratings on the Notes are placed Under Review with Developing Implications following DBRS receiving updated historical recovery data for the transaction. DBRS was notified by the Issuer that historical recovery data was reported on the monthly servicer reports was reported incorrectly prior to December 2012. DBRS has received updated recovery data from Securitisation Services S.p.A. (the Sub Servicer) and is assessing the impact of the updated data on the ratings.

Notes:

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
• Swap Criteria for European Structured Finance Transactions
• 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 investor remittance reports and performance data relating to the receivables provided by the Issuer and the Sub Servicer. DBRS considers the information available to it for the purposes of providing this rating was of satisfactory quality.

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

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

Initial Lead Analyst: Mike Babick
Initial Rating Date: 30 December 2010
Rating Committee Chair: Claire Mezzanotte

Lead Surveillance Analyst: Keith Gorman
Most Recent Rating Date: 13 March 2013
Rating Committee Chair: Claire Mezzanotte