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TEXT-Fitch assigns FADE's Series 14 'BBB(EXP)' expected rating
January 15, 2013 / 11:52 AM / 5 years ago

TEXT-Fitch assigns FADE's Series 14 'BBB(EXP)' expected rating

(The following statement was released by the rating agency)

Jan 15 - Fitch Ratings has assigned Fondo de Titulizacion del Deficit del Sistema Electrico F.T.A.’s (FADE or the issuer) Series 14 issuances an expected rating of ‘BBB(EXP)’ with a Negative Outlook. The bonds to be issued are worth EUR1000m.

All FADE series are fully guaranteed by the Spanish government up to a maximum of EUR22.0bn and hence the ratings are credit-linked to Spain’s Long-term Issuer Default Rating (IDR) of ‘BBB’ such that any change in the sovereign IDR is likely to lead to a change in the bonds’ rating. As the terms of the guarantee remain unaltered, the issuance has no rating impact on the outstanding series 1, 2, 3, 4, 5 10 and 13 FADE bonds.

The Series 14 maturity date is 17 March 2017 with a 4.125% fixed rate spread paid yearly.

FADE bonds are backed by the outstanding electricity tariff deficit credit rights in Spain that have not yet been securitised through other securitisation platforms, and is able to issue different series of bonds up to the current programme limit of EUR22bn subject to certain conditions in the programme documents. Each series can have different terms, such as different maturity dates and interest rates. However, it is a condition under the programme documentation that all the bonds issued are fully guaranteed by the Spanish government.

FADE has a total EUR15.66bn of bonds outstanding to date. This will increase to EUR16.66bn after the series 14 issuance, which is expected to take place on 21 January 2013.

The agency understands that the issuance on Series 14 is intended to be used for the acquisition of new tariff deficit claims and the refinancing of Series 5. The scheduled maturity date of Series 5 is 17 September 2013

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