DBRS Downgrades and Discontinues Ratings on the Notes issued by F.T.A. SANTANDER EMPRESAS 10

DBRS Ratings Limited (DBRS) has today discontinued its rating of BBB (low) (sf) on the Series B notes, and has downgraded to D (sf) from C (sf) and discontinued its rating on the Series C notes issued by F.T.A. SANTANDER EMPRESAS 10 (the Issuer). The transaction is a cash flow securitisation collateralised primarily by a portfolio of bank loans and credit lines originated by Banco Santander, S.A. to Spanish small and medium-sized enterprises (SMEs) and self-employed individuals.

The rating action reflects:
(1) The payment in full of the Series B notes as of 16 February 2015. The remaining balance of the Series B notes prior to the final repayment was €621,015,230.00
(2) The failure to pay ultimate interest and principal of the Series C notes. After repayment of the Series B notes, the remaining proceeds accounted for only 78.54% (€738,271,770.00) of the outstanding balance (€940,000,000.00) of the Series C notes.

Final Rating of the Series C notes was initially assigned on 28 November 2011. Please refer to www.dbrs.com for more information on this rating.

The principal methodology applicable is “Rating CLOs Backed by Loans to European Small and Medium Sized Enterprises (SMEs)”, which can be found on the DBRS website under Methodologies at http://www.dbrs.com/about/methodologies. Other methodologies and criteria referenced in this transaction are listed at the end of this press release.

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” on: http://www.dbrs.com/industries/bucket/id/10036/name/commentaries/

The sources of information used for these ratings include the parties involved in the ratings, including but not limited to the Originator, the Issuer and their agents.

DBRS considers the information made available to it for the purposes of providing these ratings to have been of satisfactory quality.

DBRS does not audit the information it receives in connection with the rating process, and it does not and cannot independently verify that information in every instance.
As this is a discontinued/withdrawn rating action, sensitivity analysis is not applicable.

The previous rating action on this transaction took place on 17 April 2014, when the rating of the Series B notes was upgraded to BBB (low) (sf) from B (sf) and the rating of the Series C notes was confirmed at C (sf).

Information regarding DBRS ratings, including definitions, policies and methodologies are available on www.dbrs.com

For further information on DBRS’s historic default rates published by the European Securities and Markets Administration (ESMA) in a central repository see:
http://cerep.esma.europa.eu/cerep-web/statistics/defaults.xhtml

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.

Notes:
All figures are in euros unless otherwise noted.

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

Initial Lead Analyst: Mudasar Chaudhry
Initial Rating Date: 24 November 2011
Initial Rating Committee Chair: Jerry van Koolbergen
Last Rating Date: 17 April 2014

Lead Surveillance Analyst: Alfonso Candelas
Rating Committee Chair: Jerry van Koolbergen

DBRS Ratings Limited
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United Kingdom

Registered in England and Wales: No. 7139960

The rating methodologies and criteria used in the analysis of this transaction can be found at: http://www.dbrs.com/about/methodologies

Legal Criteria for European Structured Finance Transactions
Master European Structured Finance Surveillance Methodology
Rating CLOs Backed by Loans to European Small and Medium-Sized Enterprises (SMEs)
Rating Methodology for CLOs and CDOs of Large Corporate Credit
Cash Flow Assumptions for Corporate Credit Securitizations
Operational Risk Assessment for European Structured Finance Servicers
Unified Interest Rate Model for U.S. and European Structured Credit
Master European Residential Mortgage-Backed Securities Rating Methodology and Jurisdictional Addenda