Fitch Affirms FCT Ginkgo Compartment Sales Finance 2014-1
Class A notes affirmed at 'AAAsf'; Outlook Stable
Class B notes affirmed at 'AAsf'; Outlook Stable
Class C notes affirmed at 'A+sf'; Outlook Stable
FCT Ginkgo Compartment Sales Finance 2014-1 is a 15-month revolving securitisation of French unsecured consumer loans originated in France by Credit Agricole Consumer Finance (CACF; A/Positive/F1). The securitised portfolio consists of loans advanced to individuals for home equipment, recreational vehicles, new vehicles and used vehicles. All the loans bear a fixed interest rate and are amortising with constant monthly instalments
KEY RATING DRIVERS
The affirmation reflects the adequate performance of the underlying receivables over the past 10 months. The transaction's performance in terms of defaults is in line with Fitch's expectations, with a cumulative default level of 0.6% as of end-July 2015. The transaction benefits from a significant level of net excess spread, representing 4.1% on average over the past six months.
The revolving period is expected to end following the payment date in January 2016. Since the transaction closed in October 2014, credit enhancement for the class A notes, provided by the subordination of the class B, C and unrated D notes and the general reserve, has been maintained at 24.8%. The class B notes' credit enhancement remains 18.8% and is provided by the subordination of the class C notes and unrated D notes and the general reserve. Credit enhancement for the class C notes remains 12.5%. Credit enhancement for the class C notes is provided by the subordination of the unrated class D notes and the general reserve.
Fitch is maintaining its original base case default and recovery expectations. Therefore, the rating sensitivities are still in line with the original ones, which can be found in the rating action commentary dated 27 October 2014 at fitchratings.com.
DUE DILIGENCE USAGE
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 CACF's 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.
SOURCES OF INFORMATION
The information below was used in the analysis.
- Transaction reporting provided by Euro Titrisation as at 31 July 2015
REPRESENTATIONS AND WARRANTIES
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 FCT Ginkgo Compartment Sales Finance 2014-1 - Appendix, dated 27 October 2014 at www.fitchratings.com). In addition refer to the special report "Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions" dated 26 March 2015 available on the Fitch website.