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January 29, 2008 |
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SANTANDER HIPOTECARIO 4: Fitch Junks EUR14.8 Mln Class F Notes Fitch Ratings has assigned Fondo de Titulizacion de Activos, Santander Hipotecario 4's notes totaling EUR1.245 billion due in October 2050, final ratings are: -- EUR184.3 million Class A1: 'AAA'; Outlook Stable -- EUR661.9 million Class A2: 'AAA'; Outlook Stable -- EUR278 million Class A3: 'AAA'; Outlook Stable -- EUR20.9 million Class B: 'AA'; Outlook Stable -- EUR30.7 million Class C: 'A'; Outlook Stable -- EUR27.1 million Class D: 'BBB'; Outlook Stable -- EUR27.1 million Class E: 'BB'; Outlook Stable -- EUR14.8 million Class F: 'CCC'; Outlook Stable This transaction is a cash-flow securitization of a EUR1.23 billion static pool of residential mortgage loans granted by Banco Santander ('AA' /'F1+'/Outlook Stable) to individuals in Spain. The ratings are based on the quality of the collateral, the underwriting and servicing of the mortgage loans, available credit enhancement, the integrity of the transaction's legal and financial structure and Santander de Titulizacion S.G.F.T, S.A's administrative capabilities Initial CE for the Class A to E notes is provided by subordination and a reserve fund, which will be funded at closing using the proceeds of the Class F notes. The Class F notes are uncollateralized by mortgages, but will benefit from excess spread. The ratings address the payment of interest on the notes according to the terms and conditions of the documentation, subject to a deferral trigger on the Class B, C, D and E notes, as well as the repayment of principal at legal final maturity. Should the deferral trigger on the Class B, C, D and E notes be hit, interest on these notes will be deferred in the priority of payments. In this instance, interest payments might not be received for a period of time, but will be received by legal final maturity. The fund will be regulated by Spanish Securitisation Law 19/1992 and Royal Decree 926/1998. Its sole purpose will be to convert mortgage transmission certificates (certificados de transmision de hipotecas) from the seller into fixed-income securities. The fund will be legally represented and managed by Santander de Titulizacion S.G.F.T, S.A, a limited liability company incorporated under Spanish law, whose activities are limited to the management of securitization funds. |
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