OREANDA-NEWS. Fitch Ratings has upgraded FTPYME TDA CAM 2, FTA's class 3SA notes and affirmed the class 2SA notes, as follows:

EUR15.9m Class 2SA: affirmed at 'A+sf'; Outlook Stable
EUR7.7m Class 3SA: upgraded to 'Bsf' from 'CCCsf'; Outlook Stable

FTPYME TDA CAM 2, F.T.A. is a granular cash flow securitisation of a static portfolio of secured and unsecured loans granted to Spanish small- and medium-sized enterprises by Caja de Ahorros del Mediterraneo (now part of Banco de Sabadell).

KEY RATING DRIVERS
Low, Stable Delinquencies
Arrears have remained at low levels over the last 12 months. The share of loans more than 90 days past due currently stands at 0.3% of the portfolio, little changed from 0.2% in January 2015. The minimal arrears, along with steady recovery proceeds, have allowed excess spread to replenish the reserve fund (RF), which now stands at EUR3.2m compared with EUR1.8m 12 months ago. Fitch has determined an annual average transaction benchmark probability of default of 4.5%.

Continued Deleveraging
The class 2SA notes received EUR10.8m of principal proceeds since January 2015. The deleveraging of the transaction has led to a significant increase in credit enhancement the class 2SA and 3SA notes. The upgrade of the class 3SA notes is driven by the credit enhancement of the notes more than doubling.

Liquidity Risks
Fitch considers that the current RF balance adequately mitigates payment interruption risk due to a default of servicer Banco de Sabadell. However, given rising levels of obligor concentration in the portfolio, adverse performance of few large obligors may deplete the RF and prevent the timely payment of interest on the class 2SA notes. These liquidity risks currently prevent an upgrade of the class 2SA notes.

The largest obligor represents 3.9% of the performing portfolio, up from 2.8% one year ago.

RATING SENSITIVITIES
A 25% increase in the obligor default probability or a 25% reduction in expected recovery rates have no rating impact on the notes.

DUE DILIGENCE USAGE
No third-party due diligence was provided or reviewed in relation to this rating action.

DATA ADEQUACY
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 did not undertake a review of the information provided about the underlying asset pools ahead of the transaction's initial closing. The subsequent performance of the transaction over the years is consistent with the agency's expectations given the operating environment and Fitch is therefore satisfied that the asset pool information relied upon for its initial rating analysis was adequately reliable.

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.
-Loan-by-loan data provided by Titulizacion de Activos as at 31 December 2015
-Transaction reporting provided by Titulizacion de Activos as at 31 January 2016