DBRS Downgrades and Discontinues Ratings on the Notes issued by FTA PYMES SANTANDER 4

DBRS Ratings Limited (DBRS) has today discontinued its rating of A (high) (sf) on the Series B notes issued by FTA PYMES SANTANDER 4 (the Issuer). DBRS has also downgraded its rating on the Series C notes to D (sf) from C (sf) and subsequently discontinued this rating. The transaction is a cash flow securitisation collateralised primarily by a portfolio of bank loans originated by Banco Santander, SA to Spanish small and medium-sized enterprises and self-employed individuals.

The rating action reflects:
(1) The payment in full of the Series B notes as of 15 October 2015. The remaining balance of the Series B notes prior to the final repayment was EUR 287,505,111.75
(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 96.65% (€512,273,412.42) of the outstanding balance (€530,000,000.00) of the Series C notes.

Final Rating of the Series C notes was initially assigned on 15 November 2012. Please refer to www.dbrs.com for more information on this rating.

Notes:
All figures are in euros unless otherwise noted.

The principal methodology applicable is Rating CLOs Backed by Loans to European Small and Medium Sized Enterprises (SMEs).

The rating actions derive directly from an acknowledgement of fact. In DBRS’s opinion, a discontinued rating action does not require the application of the entire principal methodology.

Other methodologies referenced in this transaction are listed at the end of this press release. This may 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 these ratings includes information provided by Santander de Titulizacion SGFT, S.A.

DBRS does not rely upon third-party due diligence in order to conduct its analysis. DBRS was not supplied with third-party assessments; however, this did not impact the rating analysis.

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.

The previous rating action on this transaction took place on 4 September 2015, when the rating on the Series A notes was discontinued-repaid. Previously, on 17 April 2015, the rating of the Series B notes was upgraded to A (high) (sf) from BBB (low) (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

As this is a Discontinued rating action, sensitivity analysis is not applicable.

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.

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

Initial Lead Analyst: Carlos Silva
Initial Rating Date: 6 November 2012
Initial Rating Committee Chair: Jerry van Koolbergen

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

DBRS Ratings Limited
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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)
-- Operational Risk Assessment for European Structured Finance Servicers

A description of how DBRS analyses structured finance transactions and how the methodologies are collectively applied can be found at http://www.dbrs.com/research/278375.