January 15, 2013 / 4:57 PM / 5 years ago

TEXT - Fitch raises UBI Finance 2 S.r.l.

(The following statement was released by the rating agency)
    Jan 15 - Fitch Ratings has upgraded UBI Finance 2 S.r.l.'s class A notes as

Class A (ISIN IT0004456197): upgraded to 'A+sf' from 'A-sf'; Outlook Stable

The upgrade reflects the transaction's stable performance, as well as the 
implementation of remedial actions following UBI Banca's downgrade, such as the 
transfer of the account bank, changes in the language for 'eligible investment' 
and 'eligible institution'.

Continuous amortisation of the portfolio has reduced the portfolio factor to 
42.47% of the original portfolio balance. Consequently, credit enhancement for 
class A has increased to 62.6% from 46.9% in February 2012. Current defaults are
EUR87m and make up roughly 10% of the current portfolio balance.

Since the last review in February 2012, the transaction's definition of 
'eligible investments' was amended to allow investments between payment dates in
assets maturing within 30 days rated up to 'BBB+' and 'F2', the account bank was
transferred from UBI Banca to Bank of New York Mellon ('AA-'/'F1+') and the 
notification trigger to SME borrowers on new payment instructions was removed. 
The amendment to the definition of eligible investments enables UBI Finance 2 to
invest in assets issued by UBI Banca  ('BBB+'/'F2'). In accordance with Fitch's 
'Counterparty Criteria for Structured Finance Transactions' this implies a 
rating cap of 'A+sf' on all rated notes. 

UBI Finance 2 S.r.l. is a securitisation of loans granted to Italian small and 
medium-sized businesses (SMEs). The issuer is a special purpose vehicle 
incorporated in accordance with the Italian Law of 30 April 1999, No.130.

 (Caryn Trokie, New York Ratings Unit)

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