DBRS Downgrades and Discontinues Ratings on the Notes Issued by FTA PYMES Banesto 3

DBRS Ratings Limited (DBRS) has today discontinued its ratings of AA (sf) and A (sf) on the Series A Notes and Series B Notes, respectively, issued by FTA PYMES Banesto 3 (the Issuer) due to repayment. 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 Español de Crédito, S.A. (Banesto), which no longer exists as an entity (fully integrated in Banco Santander, S.A. in May 2013), to large corporations and small- and medium-sized enterprises (SMEs) based in Spain.

The rating action reflects:
(1) The payment in full of the Series A Notes and Series B Notes as of 19 October 2015. The remaining balance prior to the final repayment of the Series A Notes was EUR 34,891,333.47 and the balance of the Series B Notes was EUR 63,700,000.00.
(2) The failure to pay ultimate interest and principal of the Series C Notes. After repayment of the Series A Notes and Series B Notes, the remaining proceeds accounted for 97.88% (EUR 95,923,097.26) of the outstanding balance (EUR 98,000,000.00) of the Series C Notes.

A final rating on the Series C Notes was initially assigned on 24 January 2013. 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 action derives directly from an acknowledgement of fact, and DBRS conducted no analysis. 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 Titulización 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 17 April 2015, when the rating on the Series A Notes was upgraded to AA (sf) from A (sf), the rating of the Series B Notes was upgraded to A (sf) from BBB (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: Mudasar Chaudhry
Initial Rating Date: 17 January 2013
Initial Rating Committee Chair: Jerry van Koolbergen

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

DBRS Ratings Limited
1 Minster Court, 10th Floor
Mincing Lane
London, EC3R 7AA
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)
-- 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.