DBRS Comments on Amendment Agreement to 24-7 Finance S.r.l.

DBRS Ratings Limited (DBRS) currently rates the Class A Notes (the Notes) issued by 24-7 Finance S.r.l. (the Issuer) at A (high) (sf). The rating was placed Under Review with Negative Implications on 18 June 2013 due to increasing delinquency trends and defaults on the underlying receivables, as well as declining credit enhancement available to the Notes. Additionally, as of the May 2013 Interest Payment, the Cash Reserve had a balance of zero. The Cash Reserve was funded at the close of the transaction (June 2008) to provide liquidity and credit support to the Notes.

On 7 August 2013, an Amendment Agreement was signed between the Issuer and the transaction counterparties. Under the Amendment Agreement, changes to certain conditions of the original transaction documents were made, including changes to the definitions to the Cash Reserve Amount and Required Liquidity Reserve Amount, as well changing the swap counterparty. Also, Unione di Banche Italiane S.c.p.A. (UBI Banca), the Originator and Servicer of the receivables, provided additional funds to the transaction through an Additional Limited Recourse Loan. The funds will form part of the Issuer Available Funds on the 20 August 2013 payment and through the Pre-Acceleration Order of Priority are expected to:

-- Credit the Liquidity Reserve Account with the Required Liquidity Reserve Amount.
-- Credit the Cash Reserve Account with the Required Cash Reserve Amount.
-- Debit the Principal Deficiency Ledger in an amount equal to the previously credited principal deficiency.

DBRS views the changes to the transaction as a result of the Amendment Agreement as credit positive. DBRS will take into account combined effects of the transaction amendments and updated performance of the underlying receivables following the 20 August 2013 payment date to resolve the Under Review with Negative Implications status.

For more details about the 18 June 2013 rating action, see: http://www.dbrs.com/research/258311/dbrs-places-24-7-finance-s-r-l-under-review-with-negative-implications.html.

For further details about the Issuer, see: http://www.dbrs.com/issuer/18031.

Notes:

The principal methodologies applicable are:
• Master European Residential Mortgage-Backed Securities Rating Methodology and Jurisdictional Addenda
• Legal Criteria for European Structured Finance Transactions
• Master European Structured Finance Surveillance Methodology
• Operational Risk Assessment for European Structured Finance Servicers
• Derivative Criteria for European Structured Finance Transactions
• 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 quarterly payment report and servicer reports provided by BNY Mellon Corporate Trustee Services Limited and Ubi Banca, respectively. 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 at http://dbrs.com/research/241173/linking-document-24-7-finance-s-r-l.pdf

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

Initial Lead Analyst: Alessio Pignataro
Initial Rating Date: 27 July 2011
Rating Committee Chair: Claire Mezzanotte

Lead Surveillance Analyst: Keith Gorman
Most Recent Rating Date: 18 June 2013
Rating Committee Chair: Erin Stafford