No rating action is warranted. No early amortisation triggers have been hit to date and the notes will start amortising on the next payment date in April 2018.

The performance of the auto loan portfolio remains in line with Scope’s expectations based on the latest transaction report dated 31 March 2018. Doubtful loans are low at 0.1% and the level of ‘90+ days past due’ delinquencies make up 1.4% of the initial portfolio outstanding. The substantial portfolio interest rate provides excess spread to provision for those loans which are currently doubtful.

The reserve fund is fully funded and cannot amortise until July 2018. However, it will continue at its current level if delinquent assets remain above 1% of the outstanding asset balance (non-doubtful).

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; and Scope’s stable view on 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 reaches legal maturity on 21 October 2029.

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

Ratings and research are available free of charge at www.scoperatings.com.