(The following statement was released by the rating agency)
Jan 15 - Fitch Ratings says that Fondo de Titulizacion del Deficit del Sistema Electrico, FTA’s (FADE) ratings (‘BBB’/Negative) will not be affected by the upcoming Series 14 issuance of EUR1000m.
Fitch has been informed by FADE’s management company (Titulizacion de Activos SGFT, SA, TdA) of the Series 14 issuance, which also benefits from the full government guarantee.
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 the Long-term Issuer Default Rating (IDR) of Spain (‘BBB’/Negative/‘F2’) so that any change in the sovereign IDR is likely to lead to a change in the rating of the bonds. 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.
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.