(The following statement was released by the rating agency)
May 24 -
-- Following a review of proposed transaction amendments and a performance review, we have affirmed our 'AAA (sf)' rating on FCT ONEYCORD's class A notes.
-- The notes are backed by a portfolio of receivables arising from draws made on revolving loans originated by Banque Accord in France.
Standard & Poor's Ratings Services today affirmed its 'AAA (sf)' credit rating on FCT ONEYCORD's EUR373.5 million class A notes.
Today's affirmation follows our review of the transaction's performance coupled with proposed amendments to the transaction. Amendments to the transaction include the extension of the revolving and legal final maturity periods by three years.
At closing, the transaction documents contained an obligation for the originator--Banque Accord (A/Stable/A-1)--to repurchase defaulted receivables during the revolving period. The issuer has amended this to an option to repurchase defaulted receivables within the extended revolving period. Our analysis relies on a required minimum asset balance of EUR580,036,284. As a result of this, we do not view the move from an obligation to an option to repurchase defaulted assets as being detrimental to the performance of the transaction.
The key performance parameters of yield, payment rate, and charge-offs have remained in line with our base case assumptions. As of March 2012, yield was 15.0% versus the base case of 13.6%, the payment rate was 5.81% versus the base case of 5.60%, and charge-offs were 4.68% versus the base case of 10.60%. The class A notes benefit from credit enhancement of 41.32%.
FCT ONEYCORD is a French asset-backed securities transaction, which closed in September 2009. A portfolio of receivables arising from draws made on revolving loans originated by Banque Accord backs the transaction. The originator is the captive finance company of the French retail group Auchan, and originates financial products, including revolving loans supported by credit cards.
STANDARD & POOR'S 17G-7 DISCLOSURE REPORT
If applicable, the Standard & Poor's 17g-7 Disclosure Report included in this credit rating report is available here.
RELATED CRITERIA AND RESEARCH
-- European Structured Finance Scenario And Sensitivity Analysis: The Effects Of The Top Five Macroeconomic Factors, March 14, 2012
-- Global Structured Finance Scenario And Sensitivity Analysis: The Effects Of The Top Five Macroeconomic Factors, Nov. 4, 2011
-- Counterparty And Supporting Obligations Methodology And Assumptions, Dec. 6, 2010
-- European Legal Criteria For Structured Finance Transactions, Aug. 28, 2008
-- European Consumer Finance Criteria, March 10, 2000
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