DBRS Downgrades Notes of TAGUS – STC, S.A. (EnergyOn No. 1) and TAGUS – STC, S.A. (EnergyOn No. 2)

DBRS Ratings Limited (“DBRS”) has downgraded the Class A1 notes issued by TAGUS – SOCIEDADE DE TITULARIZAÇÃO DE CRÉDITOS, S.A. (EnergyOn No. 1) and the Class A notes issued by TAGUS – SOCIEDADE DE TITULARIZAÇÃO DE CRÉDITOS, S.A. (EnergyOn No. 2) to BBB (high) (sf) from ‘A’ (low) (sf). Additionally, DBRS has removed the ratings from Under Review with Negative Implications.

The downgrades follow the publication of the updated version of the DBRS methodology for rating Portuguese electricity tariff securitisations on 3 May 2013. The methodology concentrates on the securitisation of electricity tariff receivables recognised under Portuguese Law. The predominant focus of the methodology is the legal and regulatory framework in addition to a discussion of the liquidity risks and the parties responsible for mitigating those risks.

In the updated methodology, DBRS changed the maximum uplift to two notches above the Sovereign rating.

Notes:

The principal methodologies applicable are:
• Rating Portuguese Electricity Tariff Securitisations
• Master European Structured Finance Surveillance Methodology
• DBRS Legal Criteria 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 parties involved in the rating, including but not limited to the Arrangers. 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: Chuck Weilamann
Initial Rating Date: 8 April 2011
Rating Committee Chair: Claire Mezzanotte

Lead Surveillance Analyst: Keith Gorman
Most Recent Rating Date: 7 May 2013
Rating Committee Chair: Claire Mezzanotte