OREANDA-NEWS. Fitch Ratings has upgraded SCF Rahoituspalvelut 2013 Limited's class B notes and affirmed the class A notes, as follows:

EUR77.7m class A notes: affirmed at 'AAAsf'; Stable Outlook
EUR48.8m class B notes: upgraded to 'AAAsf' from 'A+sf'; Stable Outlook
EUR25.6m class C notes: not rated

The transaction is a securitisation of auto loan receivables granted to Finnish individuals and companies. The originator is Santander Consumer Finance Oy, a 100% subsidiary of the Norway-based Santander Consumer Bank AS, which is a 100% subsidiary of Santander Consumer Finance, S.A. (A-/Stable/F2).

The rating actions reflect the transaction's strong performance and increased credit enhancement due to amortisation since closing in October 2013.

The upgrade also reflects Fitch's view of a remote risk of a principal deficiency trigger event, which could lead to a deferral of class B interest payments after class A principal, and the loss of liquidity coverage from the reserve fund. As a result, Fitch is of the opinion that the notes are fully commensurate with the 'AAAsf' rating.

As of end-June 2015, the aggregate outstanding notes balance was approximately 30% of its initial value. Cumulative defaults and losses amount to 0.75% and 0.16%, respectively, and are lower than Fitch's expectations. Credit enhancement is currently 53.9% for the class A notes and 21.8% for the class B notes, compared with 17% and 7.5%, respectively, at closing.

Delinquencies of 30 days past due have been increasing since inception but are at low levels; 2.14% as of end-June 2015. Arrears of 90 days past due have been stable and averaged 0.24% in the last 12 months. Fitch expects the strong performance to continue, and has revised its lifetime default base case to 1.75% from 2.25%.

The reserve fund and the liquidity reserve started amortising since the aggregate outstanding note balance reached 50% of its initial value. They have consistently met their monthly target amounts. The liquidity reserve is floored at 0.5% of the initial aggregate note balance.

Expected impact on the note rating of increased defaults (class A/B)
Current ratings: 'AAAsf'/'AAAsf'
Increase base case defaults by 10%: 'AAAsf'/'AAAsf'
Increase base case defaults by 25%: 'AAAsf'/'AA+sf'
Increase base case defaults by 50%: 'AAAsf'/'AAsf'

Expected impact on the note rating of reduced recoveries (class A/B)
Current ratings: 'AAAsf'/'AAAsf'
Reduce base case recovery by 25%: 'AAAsf'/'AAAsf'
Reduce base case recovery by 50%: 'AAAsf'/'AAAsf'

Expected impact on the note rating of increased defaults and reduced recoveries (class A/B):
Current ratings: 'AAAsf'/'AAAsf'
Increase default base case by 10%; reduce recovery base case by 10%: 'AAAsf'/'AAAsf'
Increase default base case by 25%; reduce recovery base case by 25%: 'AAAsf'/'AA+sf'
Increase default base case by 50%; reduce recovery base case by 50%: 'AAAsf'/'AA-sf'

No third party due diligence was provided or reviewed in relation to this rating action

Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pool and the transaction. There were no findings that were material to this analysis. Fitch 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.

Prior to the transaction closing, Fitch reviewed the results of a third party assessment conducted on the asset portfolio information, which indicated no adverse findings material to the rating analysis.

Prior to the transaction closing, Fitch conducted a review of a small targeted sample of the origination files and found the information contained in the reviewed files to be adequately consistent with the originator's policies and practices and the other information provided to the agency about the asset portfolio.

Overall Fitch'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.

The information below was used in the analysis.
- Loan-by-loan data available at the European Data Warehouse as at 30 June 2015
- Monthly investor reports provided by Santander Consumer Bank AS up to 30 June 2015

A comparison of the transaction's Representations, Warranties & Enforcement Mechanisms to those typical for the asset class is available by accessing the appendix that accompanies the initial new issue report (see SCF Rahoituspalvelut 2013 Limited - Appendix, dated 9 October 2013 at www.fitchratings.com). In addition refer to the special report "Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions" dated 12 June 2015 available on the Fitch website.