OREANDA-NEWS. Fitch Ratings has revised the Outlook on the following 18 tranches of 12 Portuguese structured finance (SF) transactions to Stable from Positive:

- Atlantes Mortgage No. 1 Plc, Class A notes (ISIN XS0161394324)
- Atlantes Mortgage No. 1 Plc, Class B notes (ISIN XS0161394910)
- Atlantes Mortgage No. 7 Plc, Class A notes, (ISIN PTGAMAOM0014)
- Gamma, STC S.A. / Atlantes Mortgage No. 3, Class A notes (ISIN XS0395875999)
- Gamma, STC S.A. / Atlantes Mortgages No. 4, Class A notes (ISIN XS0412478199)
- Lusitano Mortgage No. 1 Plc, Class A notes (ISIN XS0159068807)
- Lusitano Mortgage No. 1 Plc, Class B notes (ISIN XS0159070456)
- Lusitano Mortgage No. 2 Plc, Class A notes (ISIN XS0178545421)
- Lusitano Mortgage No. 2 Plc, Class B notes (ISIN XS0178546742)
- Pelican Mortgages No.1 Plc, Class A notes (ISIN: XS0159861078)
- Pelican Mortgages No.1 Plc, Class B notes (ISIN: XS0159861409)
- Pelican Mortgages No.2 Plc, Class A notes (ISIN: XS0177081634)
- Pelican Mortgages No.2 Plc, Class B notes (ISIN: XS0177083259)
- Sagres, STC S.A. / Douro SME No.2, Class A notes (ISIN: PTSSCMOM0000)
- Sagres, STC S.A. / Pelican SME No.2, Class A notes (ISIN: PTSSCWOM0008)
- Sagres, STC S.A. / Pelican Mortgages No.4, Class A notes (ISIN XS0365137990)
- Sagres, STC S.A. / Pelican Mortgages No.4, Class B notes (ISIN XS0365138295)
- Sagres, STC S.A. / Pelican Mortgages No.5, Class A notes (ISIN XS0419743033)

KEY RATING DRIVERS
Sovereign Outlook
The outlook revisions follow the revision of the Outlook on Portugal to Stable from Positive and affirmation of the sovereign Issuer Default Rating (IDR) at 'BB+' (see Fitch Revises Portugal's Outlook to Stable; Affirms at 'BB+' dated 4 March 2016).

Fitch maintains a six-notch differential between the sovereign IDR and the highest achievable SF ratings. Therefore, the sovereign Outlook revision to Stable implies a maximum achievable rating for SF transactions in Portugal at 'A+'/Stable. This rating cap reflects the risk of sovereign weaknesses increasing the likelihood of extreme macro-economic events that could undermine the performance of the securitisations.

Stable Credit Performance
The outlook revisions also reflect Fitch's expectations of stable transaction performance and that the available credit enhancement to the rated tranches remains compatible with the current ratings of the notes.

RATING SENSITIVITIES
The ratings of these tranches remain principally exposed to the sovereign and SF rating cap for transactions rated in Portugal.

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 pools and the transactions. 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.

Fitch did not undertake a review of the information provided about the underlying asset pools ahead of the transactions' initial closing. The subsequent performance of the transactions 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
Periodic asset performance checks based on investor reports

MODELS
Not Applicable

REPRESENTATIONS AND WARRANTIES
Not Applicable