DBRS Places Ratings of Auto ABS 2012-3, FTA Under Review with Positive Implications

DBRS Ratings Limited (DBRS) has today placed the following ratings of Auto ABS 2012-3, FTA (the Issuer) Under Review with Positive Implications:

-- Class A Notes at AA (low) (sf)
-- Class B Notes at CCC (sf)

The rating action follows the signing of an amendment to the Deed of Establishment (Escritura de Constitución) which resulted in a decrease in the fixed yield on the Class A Notes to 0.60% from 3.25% and in a decrease in the fixed yield on the Class B Notes to 0.80% from 3.45%. In DBRS’s view, the significant reduction in the interest rates on the Class A and Class B Notes is credit positive for the transaction.

The rated Notes are secured by a portfolio of Spanish auto loan receivables originated and serviced by Banque PSA Finance S.A., Spanish branch (BPF). BPF is a wholly owned subsidiary of Banque PSA Finance S.A. which in turn is owned by Peugeot S.A.

The transaction had a 27-month revolving period, during which BPF could sell subsequent portfolios by choosing between seven combinations of portfolio concentration, cash reserve target and weighted-average interest rate. The revolving period terminated on 26 February 2015.

On 18 February 2015, the Class A Notes, initially retained by Banque PSA Finance S.A., have been placed in the secondary market.

Notes:
All figures are in Euro unless otherwise noted.

The principal methodology applicable is the Master European Structured Finance Surveillance Methodology. Other methodologies and criteria referenced in this transaction are listed at the end of this press release.

This can be found on www.dbrs.com at:
http://www.dbrs.com/about/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” on: http://www.dbrs.com/industries/bucket/id/10036/name/commentaries/.

The sources of information used for this rating include documentation provided by Titulización de Activos S.G.F.T., S.A. and Santander Global Banking and Markets. DBRS considers the information available to it for the purposes of providing this rating was 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.

The last rating action on this transaction took place on 14 January 2015, when DBRS confirmed the ratings on the Class A and Class B Notes at AA (low) (sf) and CCC (sf), respectively.

These ratings are under review. Generally, the conditions that lead to the assignment of reviews are resolved within a 90-day period. DBRS reviews and ratings are under regular surveillance.

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

For further information on DBRS 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.

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

Initial Lead Analyst: Paolo Conti
Initial Rating Date: 23 November 2012
Initial Rating Committee Chair: Erin Stafford

Lead Surveillance Analyst: Elisa Scalco
Rating Committee Chair: Chuck Weilamann

DBRS Ratings Limited
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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 and are as follows:

Legal Criteria for European Structured Finance Transactions.
Master European Structured Finance Surveillance Methodology.
Operational Risk Assessment for European Structured Finance Servicers.
Rating European Consumer and Commercial Asset-Backed Securitisations.