DBRS Assigns Ratings to Series A Notes and Series B Notes Issued by FCC Surf

DBRS, Inc. (DBRS) has today assigned the following ratings to the notes issued by FCC Surf (the Issuer):

-- EUR 207,000,000 Series A1 Floating-Rate Partly Paid Notes due 26 November 2024 (Series A1 Notes) at A (low) (sf)

-- EUR 168,000,000 Series A2 Floating-Rate Partly Paid Notes due 26 November 2024 (Series A2 Notes) at A (low) (sf)

-- EUR 207,000,000 Series B1 Floating-Rate Partly Paid Notes due 26 November 2024 (Series B1 Notes) at BBB (high) (sf)

-- EUR 168,000,000 Series B2 Floating-Rate Partly Paid Notes due 26 November 2024 (Series B2 Notes) at BBB (high) (sf)

The Series A1 Notes and Series A2 Notes (together, the Series A Notes) and the Series B1 Notes and Series B2 Notes (together, the Series B Notes) were issued on August 14, 2007 (the Issuer Closing Date) pursuant to the Facility Agreement dated as of July 24, 2007, among Dexia Crédit Local SA (DCL) and BNP Paribas (as Arrangers) and the FCC Issuer Regulations, dated as of August 10, 2007, among EuroTitrisation (as Management Company) and BRED Banque Populaire SA (BRED Banque; as Custodian).

The Issuer is a mutual debt fund (fonds commun de créances) jointly created by EuroTitrisation and BRED Banque. The Issuer is governed under the laws of the Republic of France, specifically by Articles L. 214-5 and L. 214-43 to L. 214 49 and R. 214 92 to R. 214 115 of the French Code monetaire et financier and the terms of its Issuer Regulations.

This transaction is a French credit-linked note, which securitizes the receivables arising from a bank loan to SANEF S.A., a French toll-road operator. The Series A Notes and Series B Notes (together, the Notes) were partly funded at closing and will continue to fund in instalments. The Series A1 and B1 Notes are fully funded as of 2011 and the Series A2 and Series B2 Notes will continue to fund through 2016. The proceeds of the Notes were used by the Issuer to purchase Loan Receivables from DCL, Dublin Branch (as Originator). The Loan Receivables are guaranteed by Assured Guaranty (UK) Limited (for the Series A Notes) and by MBIA UK Insurance Limited (for the Series B Notes).

Once fully funded, the Series A Notes and Series B Notes will begin to repay annually (following the redemption schedule), starting in November 2020.

FCC Surf issued two Residual Units which are unrated.

FCC Surf also entered into a swap with DCL (acting as Swap Counterparty) on the Issuer Closing Date where, throughout the life of the transaction, FCC Surf will pay a fixed base rate to DCL in exchange for a floating-rate EURIBOR due to the Notes.

The ratings on the Series A Notes and the Series B Notes address the ultimate payments of interest and principal on or before the final Repayment Date in November 2024 (as defined by the Facility Agreement referred to above).

The ratings reflect the following:

(1) The Facility Agreement dated as of July 24, 2007, and other relevant transaction documents.

(2) The FCC Issuer Regulations dated as of August 10, 2007.

(3) The credit quality of the relevant counterparties.

(4) The integrity of the transaction structure.

(5) DBRS’s assessment of the financial guarantees in place.

Notes:
All figures are in euros unless otherwise noted.

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link to the right under Related Research or by contacting us at info@dbrs.com.

The applicable methodology is Rating CLOs and CDOs of Large Corporate Credit, which can be found on our website under Methodologies.

This rating is endorsed by DBRS Ratings Limited for use in the European Union.