Rating Action Commentary
ֳ Withdraws MBS Bancaja 3, FTA's Class D and E Ratings
Wed 07 Aug, 2024 - 9:46 AM ET
ֳ - Madrid - 07 Aug 2024: ֳ has withdrawn MBS Bancaja 3, FTA's class D and E notes' ratings.
Transaction Summary
The transaction comprises fully amortising Spanish residential mortgage loans serviced by CaixaBank, S.A. (BBB+/Positive/F2). The withdrawal follows the partial early redemption of the notes on the 26 June 2024 payment date and the subsequent payment in kind on 28 June 2024 for the total cancellation of the notes.
The class D and E notes' ratings have been withdrawn as the notes were cancelled and no longer exist. The class A2, B and C notes were paid in full. As a result, ֳ will no longer provide ratings or analytical coverage of the transaction.
KEY RATING DRIVERS
Partial Payment in Kind: The class D and E notes were partially redeemed with cash for an amount equivalent to 95.7% and 92.4% of their respective outstanding balances on the 26 June 2024 payment date. The remaining amount was cancelled via payment in kind using real estate assets owned by the SPV as part of a side agreement between the sole noteholder (Caixabank) and the SPV trustee (Europea de Titulizacion, SGFT, SA) for the total cancellation of the notes.
Redemption not DDE: ֳ does not view the partial payment in kind as a distressed debt exchange (DDE) as it has not been made to avert a probable payment default on the underlying notes. Under ֳ's Global Structured Finance Rating Criteria investor action to exercise an option causing the issuer to redeem the notes or to amend transaction documentation that subsequently generates a loss is evaluated in line with the DDE description.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade
Not applicable as the notes have been paid in full or the ratings have been withdrawn.
Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade
Not applicable as the notes have been paid in full or the ratings have been withdrawn.
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Form ABS Due Diligence-15E was not provided to, or reviewed by, ֳ in relation to this rating action.
DATA ADEQUACY
ֳ has checked the consistency and plausibility of the information it has received about the performance of the asset pool and the transaction. ֳ has not reviewed the results of any third party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring.
ֳ did not undertake a review of the information provided about the underlying asset pool ahead of the transaction's closing. The subsequent performance of the transaction over the years is consistent with the agency's expectations given the operating environment and ֳ is therefore satisfied that the asset pool information relied upon for its initial rating analysis was adequately reliable.
Overall, and together with any assumptions referred to above, ֳ's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. ֳ's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. For more information on ֳ's ESG Relevance Scores, visit /topics/esg/products#esg-relevance-scores.
Additional information is available on
PARTICIPATION STATUS
The rated entity (and/or its agents) or, in the case of structured finance, one or more of the transaction parties participated in the rating process except that the following issuer(s), if any, did not participate in the rating process, or provide additional information, beyond the issuer’s available public disclosure.
APPLICABLE CRITERIA
ADDITIONAL DISCLOSURES
ENDORSEMENT STATUS
| MBS Bancaja 3, FTA | EU Issued, UK Endorsed |