No rating action is granted. None of the early amortisation triggers implemented in the transaction are active, and the replenishment covenants that protect against a deterioration of the underlying portfolio’s credit quality are met. The revolving period ends on 22 January 2018, unless a trigger is non-compliant.

Performance of the auto loan portfolio remains in line with Scope’s expectations based on the latest transaction report dated 31 May 2017. No defaults have been recorded and the maximum level of ‘90+ days past due’ delinquencies is low, at 0.66% of the portfolio principal outstanding, which is significantly below the 2.20% stop replenishment trigger level.

The ratings reflect the solid structure of the transaction; the counterparty exposure to Banco Bilbao Vizcaya Argentaria SA (BBVA, A+/S-1/Stable Outlook), the account bank and paying agent; the management ability of Europea de Titulización SGFT SA (not rated); and Scope’s positive view on the long-term macroeconomic conditions in Spain.

The transaction is a true-sale securitisation of a EUR 700m revolving portfolio of unsecured auto loans with no residual value risk. The loans were granted by BBVA to private individuals in Spain and originated via the bank’s vehicle-finance business unit. Credit enhancement levels remain at 17% and 4.5% for the senior and junior tranches, respectively. The transaction closed on 20 July 2016 and has a legal maturity on 21 October 2029.

Scope continuously monitors all rated notes from BBVA CONSUMO 8, FT.

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