Preliminary Ratings Assigned In Albis Leasing Group's TruckLease Compartment No. 2 German Auto Lease Transaction
OVERVIEW
- We have assigned preliminary credit ratings to Trucklease Compartment No. 2's class A, B, C, and D fixed-rate notes.
- The transaction will securitize a pool of truck and other auto-related lease receivables.
- This will be Albis the Leasing group's second public transaction securitizing German lease assets.
FRANKFURT (Standard & Poor's) Feb. 22, 2012--Standard & Poor's Ratings Services today assigned its preliminary credit ratings to Trucklease S.A. Compartment No. 2's up to €100 million class A, €9.0 million class B, €15.7 million class C, and €9.0 million class D fixed-rate notes. At closing, Trucklease Compartment No. 2 will issue €16.7 million* unrated subordinated notes (see list below). NL Mobil Lease GmbH, which belongs to Albis Leasing AG, initially originated the assets. At closing, Gallinat-Bank, which is also part of the Albis Leasing group, will sell the lease receivables directly to Trucklease Compartment No. 2, the issuer. This is the Albis Leasing group's second public transaction securitizing German lease assets. The transaction will securitize a revolving pool of lease receivables that consists of leasing contracts for trucks, autos, auto-related assets, and other assets. The assets backing the notes were extended to commercial customers. We believe the most relevant risks for the transaction are the credit risk of the underlying lessees and the market-value decline risk of the vehicles backing the residual value receivables. Because the transaction will be revolving, our credit risk assessment also considered portfolio deterioration through adverse migration, partially offset by certain portfolio limits. Our analysis also took into account liquidity risk, commingling risk, tax risk, and lease-termination risk. Credit enhancement is provided by subordination and a cash reserve, which the issuer can use to cure losses and temporary liquidity shortfalls. In addition, an indemnity reserve, used to cover taxes and servicing fees, aims to protect noteholders. A set-off reserve will be funded to cover potential set-off from deposits. The cash reserve will be funded at closing through the issuance of subordinated notes, with an amount equal to 2.3% of the initial note balance. To assess lease-termination risk in the case of NL Mobil Lease's insolvency, our analysis took into account whether sufficient cash would be available to make payments to the insolvency administrator to encourage continuation of the leases. Deutsche Bank AG (A+/Negative/A-1) acts as account bank, deposit account bank, and collection account bank in this transaction. We consider that exposure to the counterparty is mitigated in line with our 2010 counterparty criteria through downgrade/replacement language (see "Counterparty And Supporting Obligations Methodology And Assumptions," publishe don Dec. 6, 2010). STANDARD & POOR'S 17G-7 DISCLOSURE REPORT SEC Rule 17g-7 requires an NRSRO, for any report accompanying a credit rating relating to an asset-backed security as defined in the Rule, to include a description of the representations, warranties and enforcement mechanisms available to investors and a description of how they differ from the representations, warranties and enforcement mechanisms in issuances of similar securities. The Standard & Poor's 17g-7 Disclosure Report included in this credit rating report is available at http://standardandpoorsdisclosure-17g7.com/1111443.pdf. RELATED CRITERIA AND RESEARCH
- Presale: Trucklease S.A. Compartment No. 2, Feb. 22, 2012
- European Economic Outlook: Back In Recession, Dec. 1, 2011
- Global Structured Finance Scenario And Sensitivity Analysis: The Effects Of The Top Five Macroeconomic Factors, Nov. 4, 2011
- European Auto ABS Index Report Q1/Q2 2011—Performance Continues To Reflect Eurozone Growth Prospects, Sept. 9, 2011
- Principles Of Credit Ratings, Feb. 16, 2011
- Ratings Assigned In Albis Leasing's Trucklease Compartment No. 1 German Auto Lease Transaction, Jan. 19, 2011
- Counterparty And Supporting Obligations Update, Jan. 13, 2011
- Counterparty And Supporting Obligations Methodology And Assumptions, Dec. 6, 2010
- Credit Stability Criteria, May 3, 2010
- European Legal Criteria For Structured Finance Transactions, Aug. 28, 2008
- A Listing Of S&P's New Actions Aimed At Strengthening The Ratings Process, Feb. 7, 2008
- European Consumer Finance Criteria, March 10, 2000
RATINGS LIST
Trucklease S.A. Compartment No. 2
Up To €150.4 Million Asset-Backed Fixed-Rate Notes
Class Prelim. Prelim.
rating amount
(mil. €)
A AAA (sf) Up to 100.0
B AA (sf) 9.0
C A (sf) 15.7
D BBB (sf) 9.0
Sub NR 16.7*
*Not including a cash reserve equal to 2.3% of the rated notes.
NR--Not rated.
| Primary Credit Analyst: | Michael Langholz, Frankfurt 49 69 33 999 312; michael_langholz@standardandpoors.com |
| Surveillance Credit Analyst: | Falk-Christian Von Berkholz, Frankfurt (1) 49-69-33999314; falk-christian_vonberkholz@standardandpoors.com |
| Additional Contact: | Structured Finance Europe; StructuredFinanceEurope@standardandpoors.com |
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