Tag Archives: TOT

$TOT,Total S.A. ADS

Statoil Gets Permission to Start Gina Krog Field Production

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A Survey Of My Side Of The Oil Patch

Statoil ASA (STO) has received approval from the Norwegian Petroleum Directorate for commencing production from the Gina Krog field, located in the North Sea.






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The Battle For Natural Gas Dominance In Russia

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Gazprom has been fending off challenges to its natural gas monopoly for quite some time now, with Novatek being the latest company to be rebuffed






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Total S.A. (TOT) Hits 52-Week High on Steady Performance

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TOTAL S.A. (TOT), an integrated oil and gas company has hit a new 52-week high of $54.34 during May 19 trading session before closing a tad lower at $53.97.






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This Could Be Oil’s Last Trip Into The $40’s

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With OPEC’s meeting approaching and the production cut extension increasingly likely, there is still speculation on how oil prices will react in the long term






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[$$] Rouhani’s Win Cheers Iran Business Leaders

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Iranian business leaders were relieved Saturday after moderate President Hassan Rouhani, a proponent of foreign investment and engagement with the world, had secured another four years in office.






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U.S. Shale Spending Dwarfs Competition: Grows 10 Times Faster

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A Survey Of My Side Of The Oil Patch

While OPEC has just two weeks left until the May 25th meeting to decide on an extension of its production cuts, U.S. shale is back to drilling and planning capital spending increases this year at a pace that is ten times faster than the rise in international oil companies’ budgets.

Emerging from the oil price rout with leaner operations and a meaner cost attitude, U.S. shale has started taking advantage of the increase in oil prices following the production cut deal that OPEC and 11 non-OPEC nations led by Russia struck at end-November. U.S. production started growing from the recent lows, and drillers have become more confident in their plans, with WTI prices hovering around US$50 for most of the first quarter this year.

Drillers in North America plan a combined capital expenditure of US$84 billion this year, an increase of 32 percent compared to last year, according to Barclays analysts, quoted by Bloomberg.

By comparison, the budget programs for international projects are seen up just 3 percent in 2017, Barclays reckons.

Related: Is This Country Africa’s Qatar Of Natural Gas?

The U.S. shale spending plans and growing production highlight the difficult position in which OPEC is caught – while the cartel is cutting production and trying to talk oil prices up, the shale drillers are reaping profits from the most profitable plays (hey, Permian) and reinvesting them in increased capital programs to pump more.

“The level of capital budget increases really surprised us,” Wood Mackenzie research analyst in Houston, Roy Martin, told Bloomberg in a phone interview.

“The specter of American supply is real,” he noted.

In its latest Short-Term Energy Outlook from earlier this week, the EIA lifted its U.S. crude oil production forecast to average 9.3 million bpd this year, compared to an estimated 8.9 million bpd last year. Next year, the EIA sees U.S. crude output averaging nearly 10.0 million bpd. Last month’s production averaged 9.1 million bpd, 200,000 bpd more than in April last year, and 600,000 bpd above the recent monthly average low reached in September 2016.

In the previous STEO, the EIA had expected this year’s production to average 9.2 million bpd and next year’s – 9.9 million bpd.

Unlike five supermajors in the space – ExxonMobil, Chevron, BP, Shell, and Total – U.S. shale drillers are working on shorter-cycle projects and didn’t have huge high-cost projects to review or defer amid the oil price crash. Among the five supermajors, it’s only Exxon that is planning higher capital spending this year, of US$22 billion, up by 16 percent from 2016. The other four are either keeping investment budgets flat, or as in Chevron’s case, are reducing the expenditure.

Within the ranks of U.S. independents, Pioneer Natural Resources’ 2017 drilling and completion capital of US$2.5 billion is US$600 million higher than in 2016. EOG Resources expects its capital expenditures this year to range from US$3.7 billion to US$4.1 billion. To compare, last year’s capital program of EOG Resources envisaged capex in the range from US$2.4 billion to US$2.6 billion.

Related: Is This Country Africa’s Qatar Of Natural Gas?

Although the cost inflation coming from oilfield services companies could mean that breakeven costs will not continue to drop as fast as before, U.S. shale drillers have been hedging to lock in the price of future production and mitigate risks from oil prices falling too much.

“Recent disclosures reveal that producers rushed to lock in oil prices above US$50 a barrel after OPEC’s November announcement about production cuts,” Andy McConn, research analyst at Wood Mackenzie, said in an analysis at the end of March, explaining why hedging will keep drilling levels buoyant during periods of low oil prices. Hedging activity has surged since Q4 2016, and “most of the new oil derivatives were added at strike prices between US$50 and US$60 a barrel,” WoodMac reckons, and warned that “Those hoping that recent oil-price weakness will prompt U.S. producers to pull back drilling activity and ease the glut of oil supply may need to keep waiting.”

So, while OPEC is trying to ‘fix’ the market, the price gains from its production-cut deal added more fuel and confidence to the activity and spending plans of U.S. shale.

By Tsvetana Paraskova for Oilprice.com

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Cards II Trust, Series 2017-1 — Moody’s assigns definitive ratings to CARDS II Trust 2017-1 Notes

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A Survey Of My Side Of The Oil Patch

Toronto, May 11, 2017 — Moody’s Investors Service, (“Moody’s”) has assigned a definitive Aaa (sf) rating to the Class A Notes and a definitive Baa1 (sf) rating to the Class B Notes of the Series 2017-1 issued by CARDS II Trust (the trust), sponsored by Canadian Imperial Bank of Commerce (CIBC, long-term deposits/long-term senior unsecured A1 negative, long-term CR assessment Aa3 (cr), short-term deposit P-1, and BCA a3). Moody’s also announced today that the issuance of the Series 2017-1 Notes would not, in and of itself and as of this time, result in the downgrade or withdrawal of the ratings assigned to any class of outstanding securities issued by the trust.

Moody’s rating actions are as follows

Issuer: Cards II Trust, Series 2017-1

USD 1,000,000,000 Class A Floating Rate Asset Backed Notes, Definitive Rating Assigned Aaa (sf)

CAD 107,465,000 Class B Floating Rate Asset Backed Notes, Definitive Rating Assigned Baa1 (sf)

RATINGS RATIONALE

The ratings are based on the quality of the underlying credit card receivables, the expertise of CIBC as servicer, the transaction’s legal and structural protections including early amortization trigger events, the credit enhancement provided by the subordinate Class B Notes in the 2017-1 series, and the likelihood of the sponsor becoming insolvent and shutting down its credit card portfolio. Moody’s assesses this likelihood from the sponsor’s counterparty risk assessment (CR assessment).

The Class A Notes represent 92.75% of the total issuance and the Class B Notes represent the remaining 7.25%. The Class A Notes will be issued in US dollars and have a floating rate coupon indexed to one-month LIBOR plus 0.37%. The trust will minimize the risk of an interest rate and currency mismatch by entering into a cross-currency and interest rate swap agreement related to the Class A Notes, with CIBC as swap counterparty. The Class B Notes will be issued in Canadian dollars and have a floating rate coupon indexed to one-month CDOR plus 0.93%.

The expected maturity date of the securities is 15 April 2019, and their legal maturity date is 18 April 2022. Moody’s rating addresses the likelihood of interest payments being made when due and the return of principal by the legal maturity date.

The assets of the trust consist of co-ownership interests in credit card receivables originated and serviced by CIBC.

Summary of Analytical Outputs

Moody’s Aaa LGSD and the Aaa CE are 23.5% and 7.5% respectively for this transaction and have been updated to reflect the impact of one notch downgrade of CIBC’s CR assessment announced on 10 May 2017 (the related rating announcement can be accessed by using this link https://www.moodys.com/research/Moodys-downgrades-Canadian-Banks–PR_366355). The Aaa LGSD reflects Moody’s expectation of the trust’s performance following a sponsor default and portfolio shutdown. The Aaa CE reflects the level of credit enhancement consistent with a Aaa (sf) rating by haircutting the Aaa LGSD based on the CR assessment of the sponsor.

Moody’s expects collateral performance in the range of 3.0% – 4.0% for net charge-offs, 20.0% – 23.0% for yield and 35.0% – 39.0% for the principal payment rate.

Moody’s performance expectations for a given variable indicate Moody’s forward-looking view of the likely range of performance over the medium term. From time to time, Moody’s may, if warranted, change these expectations. Performance that falls outside the given range may indicate that the collateral’s credit quality is stronger or weaker than Moody’s had anticipated when the related securities were rated. Even so, a deviation from the expected range will not necessarily result in a rating action nor does performance within expectations preclude such actions. The decision to take (or not take) a rating action is dependent on an assessment of a range of factors including, but not exclusively, the performance metrics.

Methodology Underlying the Rating Action:

The principal methodology used in these ratings was “Moody’s Approach to Rating Credit Card Receivables-Backed Securities” published in June 2015. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.

On 22 March 2017, Moody’s released a Request for Comment, in which it has requested market feedback on potential revisions to its Approach to Assessing Counterparty Risks in Structured Finance. If the revised Methodology is implemented as proposed, the Credit Ratings on the CARDS II Trust, Series 2017-1 Notes are not expected to be affected. Please refer to Moody’s Request for Comment, titled “Moody’s Proposes Revisions to Its Approach to Assessing Counterparty Risks in Structured Finance,” for further details regarding the implications of the proposed Methodology revisions on certain Credit Ratings.

Factors that would lead to an upgrade or downgrade of the ratings:

Up

Moody’s could upgrade the rating of the Class B Notes if our expectation of the trust’s performance following a sponsor default and portfolio shutdown (i.e., Aaa LGSD) improves materially, specifically, if the charge-off rate falls or the payment rate or yield rises. A decrease in Moody’s assessment of the likelihood of the sponsor shutting down its credit card portfolio, generally reflected from an upgrade in the sponsor’s CR assessment, could also lead to an upgrade to the rating of the Class B Notes.

Down

Moody’s could downgrade the ratings of the Class A and/or Class B Notes if our expectation of the trust’s performance following a sponsor default and portfolio shutdown (i.e., Aaa LGSD) deteriorates materially, specifically, if the charge-off rate rises or the payment rate or yield falls. A downgrade to the sponsor’s CR assessment could also lead to a downgrade to the ratings of the Class A and/or Class B Notes.

Loss and Cash Flow Analysis:

In rating this transaction, Moody’s uses a cash flow model to determine the collateral losses in a maximum stress scenario. As a second step, Moody’s haircuts such collateral losses based on the sponsor’s credit quality. Finally, Moody’s compares note available credit enhancement with the adjusted collateral losses, taking into account loss allocation and other structural features, to derive the expected loss for each rated instrument.

REGULATORY DISCLOSURES

For further specification of Moody’s key rating assumptions and sensitivity analysis, see the sections Methodology Assumptions and Sensitivity to Assumptions of the disclosure form.

Moody’s either did not receive or take into account one or more third-party due diligence assessment(s) regarding the underlying assets or financial instruments (the “Due Diligence Assessment(s)”) in this credit rating action.

The Due Diligence Assessment(s) referenced herein were prepared and produced solely by parties other than Moody’s. While Moody’s uses Due Diligence Assessment(s) only to the extent that Moody’s believes them to be reliable for purposes of the intended use, Moody’s does not independently audit or verify the information or procedures used by third-party due-diligence providers in the preparation of the Due Diligence Assessment(s) and makes no representation or warranty, express or implied, as to the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of the Due Diligence Assessment(s).

Further information on the representations and warranties and enforcement mechanisms available to investors are available on http://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBS_1072282

Moody’s describes its loss and cash flow analysis in the section “Ratings Rationale” of this press release.

Moody’s quantitative analysis entails an evaluation of scenarios that stress factors contributing to sensitivity of ratings and take into account the likelihood of severe collateral losses or impaired cash flows.

For ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody’s rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider’s credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this credit rating action, and whose ratings may change as a result of this credit rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.

The ratings have been disclosed to the rated entities or their designated agent(s) and issued with no amendment resulting from that disclosure.

Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody’s legal entity that has issued the rating.

Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.

Aliya Ehmar
Associate Analyst
Structured Finance Group
Moody’s Canada Inc.
70 York Street
Suite 1400
Toronto, ON M5J 1S9
Canada
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653

Richard Hunt
VP – Sr Credit Officer/Manager
Structured Finance Group
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653

Releasing Office:
Moody’s Canada Inc.
70 York Street
Suite 1400
Toronto, ON M5J 1S9
Canada
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653

No Related Data.

© 2017 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY’S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL, FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

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To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCH RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.

Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any rating, agreed to pay to Moody’s Investors Service, Inc. for appraisal and rating services rendered by it fees ranging from $1,500 to approximately $2,500,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors. It would be reckless and inappropriate for retail investors to use MOODY’S credit ratings or publications when making an investment decision. If in doubt you should contact your financial or other professional adviser.

Additional terms for Japan only: Moody’s Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody’s Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for appraisal and rating services rendered by it fees ranging from JPY200,000 to approximately JPY350,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.






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IM GRUPO BANCO POPULAR LEASING 3, FT — Moody’s assigns provisional ratings to the notes to be issued by IM GRUPO BANCO POPULAR LEASING 3, FT

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A Survey Of My Side Of The Oil Patch

EUR 1,100 million of securities rated

Madrid, May 11, 2017 — Moody’s Investors Service has today assigned the following provisional ratings to the notes to be issued by IM GRUPO BANCO POPULAR LEASING 3, FT (the Issuer):

….EUR880M Series A Notes due August 2050, Assigned (P)A2 (sf)

….EUR220M Series B Notes due August 2050, Assigned (P)Caa2 (sf)

Moody’s issues provisional ratings in advance of the final sale of financial instruments, but these ratings only represent Moody’s preliminary credit opinions. Upon a conclusive review of a transaction and associated documentation, Moody’s will endeavour to assign definitive ratings. A definitive rating (if any) may differ from a provisional rating.

IM GRUPO BANCO POPULAR LEASING 3, FT is a cash securitization of lease receivables granted by Banco Popular Espanol, S.A. (“Banco Popular”, Long Term Deposit Rating Ba3 Not on Watch, Long Term Senior Unsecured Rating (P)B1 Not on Watch, Long Term Counterparty Risk Assessment Ba2(cr) Not on Watch) and Banco Pastor, S.A. (NR) to corporates, small and medium-sized enterprises (SMEs) and self-employed individuals located in Spain.

RATINGS RATIONALE

The ratings of the notes are primarily based on the analysis of the credit quality of the underlying portfolio, the structural integrity of the transaction, the roles of external counterparties and the protection provided by credit enhancement.

The provisional pool analysed was, as of April 2017, composed of a portfolio of 37,428 lease contracts granted to obligors located in Spain. Most of the assets were originated between 2014 and 2016, and have a weighted average seasoning of 2.3 years and a weighted average remaining term of 5.1 years. The securitised portfolio includes different sub-pools characterised by the nature of the leased assets: real estate (21.4%), equipment (32.7%), vehicles (42.4%) and other (3.5%). The top three industry sectors in the pool, in terms of Moody’s industry classification, are Transportation Cargo (26.6%), Construction & Building (11.4%) and Beverage, Food & Tobacco (9.4%). Geographically, the borrowers are located mostly in the regions of Andalusia (19.1%), Catalonia (18.4%) and Madrid (16.1%). At closing, any leases more than 30 days in arrears will be excluded from the final portfolio. The securitized portfolio does not include the so-called “residual value instalment”, i.e. the final instalment amount to be paid by the lessee (if such option is chosen) to acquire full ownership of the leased asset.

The transaction benefits from a cash reserve which is funded at closing and is equivalent to 3% of the original balance of the pool of assets. This reserve fund provides liquidity protection to the notes over the life of the transaction and credit protection on the final maturity. In addition, Series A Notes benefit from the subordination of Series B Notes, which represent 20% of the total issue.

In Moody’s view, the credit positive features of this deal include, among others: (i) the pool granularity with an effective number of obligors exceeding 600, (ii) the portfolio diversification across industry sectors and geographical regions; (iii) the low exposure to the real estate development sector, representing 5.4% of the pool volume, (iv) the short weighted average life of the portfolio of 2.8 years. The transaction also shows a number of credit weaknesses, including: (i) the historical recovery data provided by Banco Popular and the performance observed on its previous leasing transactions show below average recoveries compared to the Spanish market; (ii) high degree of linkage to Banco Popular acting as key counterparty in the transaction in its role of servicer and treasury account holder; (iii) absence of interest rate hedge mechanism in place while the notes pay a floating coupon and 29.6% of the pool balance are fixed rate leases.

In its quantitative assessment, Moody’s assumed an inverse normal default distribution for this securitised portfolio due to its granularity. The rating agency derived the default distribution, namely the relevant main inputs such as the mean default probability and its related standard deviation, via the analysis of: (i) the characteristics of the loan-by-loan portfolio information, complemented by the available historical vintage data; (ii) the potential fluctuations in the macroeconomic environment during the lifetime of this transaction; and (iii) the portfolio concentrations in terms of industry sectors and single obligors. Moody’s assumed the cumulative default probability of the portfolio to be equal to 11.2% over a weighted average life of 2.8 years (equivalent to a B1 rating proxy), with a coefficient of variation (CoV, i.e. the ratio of standard deviation over mean default rate) of 35.6%. The rating agency has assumed stochastic recoveries with a mean recovery rate of 35% and a standard deviation of 20%. Given legal uncertainties to access recovery proceeds on defaulted leases upon insolvency of the originator, Moody’s assumed a 15% stressed mean recovery rate upon originator default. In addition, Moody’s has assumed the prepayments to be 10% per year. These assumptions correspond to a portfolio credit enhancement of 21%.

Counterparty risks:

Banco Popular and Banco Pastor, S.A. will act as servicers of the leases, while InterMoney Titulización, S.G.F.T., S.A. will be the management company (Gestora) of the Issuer.

All of the payments under the assets in the securitised pool are paid into the servicer’s account and swept daily into an issuer account held at Banco Santander S.A. (Spain) (“Banco Santander”, Long Term Deposit Rating A3 Not on Watch, Short Term Deposit Rating P-2 Not on Watch). Moody’s has considered one month of lost collections upon insolvency of the servicer due to potential commingling risk. In addition, Banco Popular acts as paying agent and will hold the Issuer’s treasury account which, two business days before each monthly payment date, will receive the amounts to be paid under the waterfall. Moody’s has considered this additional exposure to Banco Popular in its analysis.

The principal methodology used in these ratings was “Moody’s Approach to Rating ABS Backed by Equipment Leases and Loans” published in December 2015. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.

Please note that on March 2017, Moody’s released a Request for Comment, in which it has requested market feedback on potential revisions to its Methodology for Counterparty Risk in Structured Finance. If the revised Methodology is implemented as proposed, the Credit Rating on IM GRUPO BANCO POPULAR LEASING 3, FT may be affected. Please refer to Moody’s Request for Comment, titled “Moody’s Proposes Revisions to Its Approach to Assessing Counterparty Risks in Structured Finance” for further details regarding the implications of the proposed Methodology revisions on certain Credit Ratings.

The ratings address the expected loss posed to investors by the legal final maturity of the notes. Moody’s ratings address only the credit risk associated with the transaction, Other non-credit risks have not been addressed but may have a significant effect on yield to investors.

Factors that would lead to an upgrade or downgrade of the ratings:

Factors or circumstances that could lead to a downgrade of the ratings affected by today’s action would be (1) worse-than-expected performance of the underlying collateral; (2) an increase in counterparty risk; (3) an increase in country risk.

Factors or circumstances that could lead to an upgrade of the ratings affected by today’s action would be the better-than-expected performance of the underlying assets, a decline in counterparty risk or decreased country risk.

Moody’s also tested other set of assumptions under its Parameter Sensitivities analysis. If the assumed default probability of 11.2% used in determining the initial rating was changed to 14.6% and the recovery rate of 35% was changed to 25%, the model-indicated ratings for Serie A and Serie B of A2(sf) and Caa2(sf) would be Baa2(sf) and Ca(sf) respectively.

Parameter Sensitivities provide a quantitative, model-indicated calculation of the number of notches that a Moody’s-rated structured finance security may vary if certain input parameters used in the initial rating process differed. The analysis assumes that the deal has not aged. It is not intended to measure how the rating of the security might migrate over time, but rather, how the initial rating of the security might differ as certain key parameters vary.

REGULATORY DISCLOSURES

For further specification of Moody’s key rating assumptions and sensitivity analysis, see the sections Methodology Assumptions and Sensitivity to Assumptions of the disclosure form.

The analysis relies on an assessment of collateral characteristics to determine the collateral loss distribution, that is, the function that correlates to an assumption about the likelihood of occurrence to each level of possible losses in the collateral. As a second step, Moody’s evaluates each possible collateral loss scenario using a model that replicates the relevant structural features to derive payments and therefore the ultimate potential losses for each rated instrument. The loss a rated instrument incurs in each collateral loss scenario, weighted by assumptions about the likelihood of events in that scenario occurring, results in the expected loss of the rated instrument.

Moody’s quantitative analysis entails an evaluation of scenarios that stress factors contributing to sensitivity of ratings and take into account the likelihood of severe collateral losses or impaired cash flows. Moody’s weights the impact on the rated instruments based on its assumptions of the likelihood of the events in such scenarios occurring.

For ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody’s rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider’s credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this credit rating action, and whose ratings may change as a result of this credit rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.

Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody’s legal entity that has issued the rating.

Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.

Gaston Wieder
Vice President – Senior Analyst
Structured Finance Group
Moody’s Investors Service Espana, S.A.
Calle Principe de Vergara, 131, 6 Planta
Madrid 28002
Spain
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

Carole Gintz
Associate Managing Director
Structured Finance Group
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

Releasing Office:
Moody’s Investors Service Espana, S.A.
Calle Principe de Vergara, 131, 6 Planta
Madrid 28002
Spain
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

No Related Data.

© 2017 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY’S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL, FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

MOODY’S CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS OR MOODY’S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.

ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.

All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY’S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY’S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing the Moody’s publications.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCH RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.

Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any rating, agreed to pay to Moody’s Investors Service, Inc. for appraisal and rating services rendered by it fees ranging from $1,500 to approximately $2,500,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors. It would be reckless and inappropriate for retail investors to use MOODY’S credit ratings or publications when making an investment decision. If in doubt you should contact your financial or other professional adviser.

Additional terms for Japan only: Moody’s Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody’s Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for appraisal and rating services rendered by it fees ranging from JPY200,000 to approximately JPY350,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.






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FCT ELIDE Compartiment 2017-01 — Moody’s: French Prime RMBS 90-plus days delinquency improved in the three-month period ending February 2017

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A Survey Of My Side Of The Oil Patch

French Prime RMBS Indices — February 2017

Frankfurt am Main, May 11, 2017 — The 90+ days delinquency over current balance of the French prime RMBS decreased to 0.0% in February 2017 from 0.1% in November 2016, according to the latest indices published by Moody’s Investors Service. The decrease is principally driven by the termination of CIF ASSETS 2001-1.

The cumulative defaults as of original balance remained constant at 0.5% from November 2016 to February 2017. Moody’s annualised total redemption rate increased to 20.5% in February 2017 from 18.4% for the same period.

As of February 2017, the 8 Moody’s-rated French prime RMBS transactions had a total outstanding pool balance of EUR55.6 billion, compared with EUR65.1 billion in November 2016, constituting a decrease of 15%. CIF ASSETS 2001-1 was redeemed in February. Transactions Domos 2017, FCT CREDIT AGRICOLE HABITAT 2017 and FCT ELIDE Compartiment 2017-01 were added to the index.

In some RMBS and consumer loan ABS deals, the proportion of “debt consolidation” loans within the underlying collateral pools has been increasing. See Sector In-Depth, 12 January 2017, http://www.moodys.com/viewresearchdoc.aspx?docid=PBS_1046103

For the latest publications, please refer to the Related Research tab of the index report French Prime RMBS Indices — February 2017

http://www.moodys.com/viewresearchdoc.aspx?docid=PBS_SF452240

Moody’s publishes its indices mid-month on www.moodys.com in the Structured Finance sub-directory.

In addition, Moody’s publishes a weekly summary of structured finance credit, ratings and methodologies, available to all registered users of our website, at www.moodys.com/SFQuickCheck.

NOTE TO JOURNALISTS ONLY: For more information, please call one of our global press information hotlines: New York +1-212-553-0376, London +44-20-7772-5456, Tokyo +813-5408-4110, Hong Kong +852-3758-1350, Sydney +61-2-9270-8141, Mexico City 001-888-779-5833, São Paulo 0800-891-2518, or Buenos Aires 0800-666-3506. You can also email us at mediarelations@moodys.com or visit our web site at www.moodys.com.

This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.

Eddie Eguida
Lead Financial Data Analyst
Structured Finance Group
Moody’s Deutschland GmbH
An der Welle 5
Frankfurt am Main 60322
Germany
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

Carole Sanz-Paris
Vice President – Senior Analyst
Structured Finance Group
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

Releasing Office:
Moody’s Deutschland GmbH
An der Welle 5
Frankfurt am Main 60322
Germany
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

No Related Data.

© 2017 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY’S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL, FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

MOODY’S CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS OR MOODY’S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.

ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.

All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY’S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY’S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing the Moody’s publications.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCH RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.

Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any rating, agreed to pay to Moody’s Investors Service, Inc. for appraisal and rating services rendered by it fees ranging from $1,500 to approximately $2,500,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors. It would be reckless and inappropriate for retail investors to use MOODY’S credit ratings or publications when making an investment decision. If in doubt you should contact your financial or other professional adviser.

Additional terms for Japan only: Moody’s Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody’s Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for appraisal and rating services rendered by it fees ranging from JPY200,000 to approximately JPY350,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.






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Harvest CLO XVII Designated Activity Company — Moody’s assigns definitive ratings to seven classes of notes issued by Harvest CLO XVII Designated Activity Company

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A Survey Of My Side Of The Oil Patch

London, 11 May 2017 — Moody’s Investors Service announced that it has assigned the following definitive ratings to notes issued by Harvest CLO XVII Designated Activity Company (the “Issuer” or “Harvest CLO XVII DAC”):

….EUR 242,000,000 Class A Senior Secured Floating Rate Notes due 2030, Definitive Rating Assigned Aaa (sf)

….EUR 43,500,000 Class B-1 Senior Secured Floating Rate Notes due 2030, Definitive Rating Assigned Aa2 (sf)

….EUR 10,000,000 Class B-2 Senior Secured Fixed Rate Notes due 2030, Definitive Rating Assigned Aa2 (sf)

….EUR 21,500,000 Class C Senior Secured Deferrable Floating Rate Notes due 2030, Definitive Rating Assigned A2 (sf)

….EUR 20,000,000 Class D Senior Secured Deferrable Floating Rate Notes due 2030, Definitive Rating Assigned Baa2 (sf)

….EUR 24,000,000 Class E Senior Secured Deferrable Floating Rate Notes due 2030, Definitive Rating Assigned Ba2 (sf)

….EUR 9,750,000 Class F Senior Secured Deferrable Floating Rate Notes due 2030, Definitive Rating Assigned B2 (sf)

RATINGS RATIONALE

Moody’s definitive ratings of the rated notes address the expected loss posed to noteholders by the legal final maturity of the notes in 2030. The definitive ratings reflect the risks due to defaults on the underlying portfolio of loans given the characteristics and eligibility criteria of the constituent assets, the relevant portfolio tests and covenants as well as the transaction’s capital and legal structure. Furthermore, Moody’s is of the opinion that the collateral manager, Investcorp Credit Management EU Limited (“Investcorp”), has sufficient experience and operational capacity and is capable of managing this CLO.

Harvest CLO XVII DAC is a managed cash flow CLO. At least 90% of the portfolio must consist of secured senior obligations and up to 10% of the portfolio may consist of unsecured senior loans, second lien loans, mezzanine obligations, high yield bonds and/or partial PIK obligations. The portfolio is approximately 95% ramped up as of the closing date and is expected to be comprised predominantly of corporate loans to obligors domiciled in Western Europe. The remainder of the portfolio will be acquired during the six month ramp-up period in compliance with the portfolio guidelines.

Investcorp will manage the CLO. It will direct the selection, acquisition and disposition of collateral on behalf of the Issuer and may engage in trading activity, including discretionary trading, during the transaction’s four-year reinvestment period. Thereafter, purchases are permitted using principal proceeds from unscheduled principal payments and proceeds from sales of credit impaired obligations, and are subject to certain restrictions.

In addition to the seven classes of notes rated by Moody’s, the Issuer issued EUR 42,900,000 of subordinated notes. Moody’s will not assign a rating to this class of notes.

The transaction incorporates interest and par coverage tests which, if triggered, will divert interest and principal proceeds to pay down the notes in order of seniority.

Factors that would lead to an upgrade or downgrade of the ratings:

The rated notes’ performance is subject to uncertainty. The notes’ performance is sensitive to the performance of the underlying portfolio, which in turn depends on economic and credit conditions that may change. Investcorp’s investment decisions and management of the transaction will also affect the notes’ performance.

Loss and Cash Flow Analysis:

Moody’s modeled the transaction using CDOEdge, a cash flow model based on the Binomial Expansion Technique, as described in Section 2.3 of the “Moody’s Global Approach to Rating Collateralized Loan Obligations” rating methodology published in October 2016. The cash flow model evaluates all default scenarios that are then weighted considering the probabilities of the binomial distribution assumed for the portfolio default rate. In each default scenario, the corresponding loss for each class of notes is calculated given the incoming cash flows from the assets and the outgoing payments to third parties and noteholders. Therefore, the expected loss or EL for each tranche is the sum product of (i) the probability of occurrence of each default scenario and (ii) the loss derived from the cash flow model in each default scenario for each tranche.

Moody’s used the following base-case modeling assumptions:

Par Amount: EUR 400,000,000

Diversity Score: 38

Weighted Average Rating Factor (WARF): 2750

Weighted Average Spread (WAS): 3.65%

Weighted Average Coupon (WAC): 6.25%

Weighted Average Recovery Rate (WARR): 43.50%

Weighted Average Life (WAL): 8 years

As part of the base case, Moody’s has addressed the potential exposure to obligors domiciled in countries with local currency country risk ceiling (LCC) of A1 or below. As per the portfolio constraints, exposures to countries with local currency country risk ceiling rating of between A1 to A3 cannot exceed 10%, and there may be no exposure to countries with a local currency country risk ceiling below A3. Following the effective date, and given these portfolio constraints and the current sovereign ratings of eligible countries, the total exposure to countries with a LCC of A1 or below may not exceed 10% of the total portfolio, with no exposure to countries with a LCC below A3. The remainder of the pool will be domiciled in countries which currently have a LCC of Aa3 and above. Given this portfolio composition, the model was run without the need to apply portfolio haircuts as further described in the methodology.

Stress Scenarios:

Together with the set of modelling assumptions above, Moody’s conducted an additional sensitivity analysis, which was an important component in determining the ratings assigned to the rated notes. This sensitivity analysis includes increased default probability relative to the base case. Below is a summary of the impact of an increase in default probability (expressed in terms of WARF level) on each of the rated notes (shown in terms of the number of notch difference versus the current model output, whereby a negative difference corresponds to higher expected losses), holding all other factors equal.

Percentage Change in WARF: WARF + 15% (to 3163 from 2750)

Ratings Impact in Rating Notches:

Class A Senior Secured Floating Rate Notes: 0

Class B-1 Senior Secured Floating Rate Notes: -2

Class B-2 Senior Secured Fixed Rate Notes: -2

Class C Senior Secured Deferrable Floating Rate Notes: -2

Class D Senior Secured Deferrable Floating Rate Notes: -2

Class E Senior Secured Deferrable Floating Rate Notes: -1

Class F Senior Secured Deferrable Floating Rate Notes: 0

Percentage Change in WARF: WARF +30% (to 3575 from 2750)

Ratings Impact in Rating Notches:

Class A Senior Secured Floating Rate Notes: -0

Class B-1 Senior Secured Floating Rate Notes: -3

Class B-2 Senior Secured Fixed Rate Notes: -3

Class C Senior Secured Deferrable Floating Rate Notes: -4

Class D Senior Secured Deferrable Floating Rate Notes: -2

Class E Senior Secured Deferrable Floating Rate Notes: -1

Class F Senior Secured Deferrable Floating Rate Notes: -1

Further details regarding Moody’s analysis of this transaction may be found in the upcoming new issue report, available soon on Moodys.com.

Methodology Underlying the Rating Action:

The principal methodology used in these ratings was “Moody’s Global Approach to Rating Collateralized Loan Obligations” published in October 2016. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.

REGULATORY DISCLOSURES

For further specification of Moody’s key rating assumptions and sensitivity analysis, see the sections Methodology Assumptions and Sensitivity to Assumptions of the disclosure form.

Further information on the representations and warranties and enforcement mechanisms available to investors are available on http://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBS_1071009.

Moody’s describes its loss and cash flow analysis in the section “Ratings Rationale” of this press release.

Moody’s describes the stress scenarios it has considered for this rating action in the section “Ratings Rationale” of this press release.

For ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody’s rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider’s credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this credit rating action, and whose ratings may change as a result of this credit rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.

Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody’s legal entity that has issued the rating.

Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.

George Zittis
VP – Senior Credit Officer
Structured Finance Group
Moody’s Investors Service Ltd.
One Canada Square
Canary Wharf
London E14 5FA
United Kingdom
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

Thorsten Klotz
MD – Structured Finance
Structured Finance Group
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

Releasing Office:
Moody’s Investors Service Ltd.
One Canada Square
Canary Wharf
London E14 5FA
United Kingdom
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

No Related Data.

© 2017 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.

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