No rating action is granted. The class A notes have amortised to EUR 672.4m (95.9% of the class A initial balance), based on the latest transaction reporting dated 31 August 2016. Credit enhancement for the tranche has consequently increased to 25.9% from 25% at closing. The credit enhancement for class B has increased to 3.1% from 3% at closing. The 90-days-past-due delinquencies are at 0.77%, below our expectations, reflecting the short-term positive outlook on the Spanish economy.

IM Grupo Banco Popular MBS 3, FT is a granular, true-sale securitisation of a EUR 900m portfolio of non-conforming, first-lien mortgage-secured loans granted by Grupo Banco Popular (Banco Popular Español SA and its fully owned subsidiary, Banco Popular Pastor SA) to Spanish individuals and resident/non-resident foreigners (19% at closing), largely to finance the purchase of residential properties in Spain. The transaction closed on 11 December 2015 with a legal maturity of 22 December 2058.

Scope continuously monitors all rated notes from IM Grupo Banco Popular MBS 3, FT.

Ratings and research are freely available at www.scoperatings.com.