Announcements

    Drinks

      Scope takes no action on the Class A and Class B notes issued by Hefesto STC S.A. - Guincho Finance
      WEDNESDAY, 11/11/2020 - Scope Ratings GmbH
      Download PDF

      Scope takes no action on the Class A and Class B notes issued by Hefesto STC S.A. - Guincho Finance

      No action has been taken on the Class A and Class B notes issued by Hefesto STC S.A. - Guincho Finance following a monitoring review.

      Scope completed a monitoring review of the following notes issued by Hefesto STC S.A. - Guincho Finance:

      Class A (ISIN PTHEFZOM0001), current balance EUR 53.4m: BBB-SF

      Class B (ISIN PTHEF1OM0004), EUR 14m: B-SF

      Class J (ISIN PTHEF2OM0003), EUR 25m: not rated

      Hefesto STC S.A. - Guincho Finance is a static cash securitisation of a EUR 482m portfolio (as of closing) of Portuguese non-performing loans (NPLs) originated by Banco Santander Totta S.A. The transaction closed on 16 November 2018.

      The review took place on 5 November 2020 using transaction data through May 2020, resulting in no action on the assigned ratings. This monitoring note does not constitute a rating action nor does it indicate the likelihood of a credit rating action in the short term. The latest information on the credit ratings in this monitoring note along with the associated rating history can be found at www.scoperatings.com.

      Key rating factors

      The transaction exhibits a robust performance with a cumulative collection ratio of 233.2% of the business plan through the third interest payment date (31 May 2020). The profitability ratio is 214.1% through the same period. Aggregate realised gross collections amount to EUR 40.1m. Scope’s review was based on available payment information, investor reports and servicer reports as of November 2020.

      Gross realised collections amount to 35.6% and 30.6% of Scope’s expected lifetime collections considered in the initial analysis of the Class A and Class B notes, respectively. (Scope’s rating-conditional rating approach applies increasing levels of stress as the target rating of an instrument increases.)

      Cumulative collections through 30 April 2020 are 3.31x higher than Scope’s expectations in the Class A analysis and 1.23x higher than our Class B analysis. This partially mitigates the initial negative effects of the Covid-19 pandemic and near-term uncertainty going forward.

      No interest subordination event has occurred, since both the cumulative collections ratio and the cumulative profitability ratio (233.2% and 214.1%, respectively) are above the 90% trigger level.

      CREDIT-POSITIVE (+)

      Performance: Collections have come in much faster than Scope’s closing expectations and currently represent 35.6% and 30.6% of our expected lifetime collections considered in the initial analysis of the Class A and Class B notes, respectively.
      Interest rate cap: The transaction benefits from an interest rate cap which mitigates the interest rate risk between the asset recoveries and the floating rate on the notes. Class A is strongly over hedged with the cap notional being at EUR 100m whereas class A is only EUR 53.4m outstanding.

      CREDIT-NEGATIVE (-)

      Portuguese economy: The pandemic has halted Portugal’s improving trends in growth and public finances resulting in a recession. Despite government support measures, increased collateral liquidity risk and weakened borrower liquidity positions negatively affect recovery prospects.

      The methodologies applicable for the reviewed rating (Non-performing loan ABS methodology, published on 9 September 2020, Methodology for counterparty risk in structured finance, published on 8 July 2020) are available on https://www.scoperatings.com/#!methodology/list .
      This monitoring note is issued by Scope Ratings GmbH, Lennéstraße 5, D-10785 Berlin, Tel +49 30 27891-0.
      Lead analyst Martin Hartmann

      © 2020 Scope SE & Co. KGaA and all its subsidiaries including Scope Ratings GmbH, Scope Analysis GmbH, Scope Investor Services GmbH and Scope Risk Solutions GmbH (collectively, Scope). All rights reserved. The information and data supporting Scope's ratings, rating reports, rating opinions and related research and credit opinions originate from sources Scope considers to be reliable and accurate. Scope does not, however, independently verify the reliability and accuracy of the information and data. Scope's ratings, rating reports, rating opinions, or related research and credit opinions are provided 'as is' without any representation or warranty of any kind. In no circumstance shall Scope or its directors, officers, employees and other representatives be liable to any party for any direct, indirect, incidental or other damages, expenses of any kind, or losses arising from any use of Scope's ratings, rating reports, rating opinions, related research or credit opinions. Ratings and other related credit opinions issued by Scope are, and have to be viewed by any party as, opinions on relative credit risk and not a statement of fact or recommendation to purchase, hold or sell securities. Past performance does not necessarily predict future results. Any report issued by Scope is not a prospectus or similar document related to a debt security or issuing entity. Scope issues credit ratings and related research and opinions with the understanding and expectation that parties using them will independently assess the suitability of each security for investment or transaction purposes. Scope's credit ratings address relative credit risk, they do not address other risks such as market, liquidity, legal, or volatility. The information and data included in is protected by copyright and other laws. To reproduce, transmit, transfer, disseminate, translate, resell, or store for subsequent use for any such purpose the information and data contained in, contact Scope Ratings GmbH at Lennéstraße 5 D-10785 Berlin. Scope Ratings GmbH, Lennéstraße 5, 10785 Berlin, District Court for Berlin (Charlottenburg) HRB 192993 B, Managing Director: Guillaume Jolivet. contact Scope Ratings GmbH at Lennéstraße 5 D-10785 Berlin. Scope Ratings GmbH, Lennéstraße 5, 10785 Berlin, District Court for Berlin (Charlottenburg) HRB 192993 B, Managing Director: Guillaume Jolivet. contact Scope Ratings GmbH at Lennéstraße 5 D-10785 Berlin. Scope Ratings GmbH, Lennéstraße 5, 10785 Berlin, District Court for Berlin (Charlottenburg) HRB 192993 B, Managing Director: Guillaume Jolivet.

      Related news

      Show all
      Real Estate Insight - April 2024

      12/4/2024 Research

      Real Estate Insight - April 2024

      Scope has completed the monitoring review for Prosil Acquisition S.A. - Spanish NPL ABS

      11/4/2024 Monitoring note

      Scope has completed the monitoring review for Prosil ...

      Scope downgrades Class A notes issued by Aqui SPV S.r.l.  Italian NPL ABS

      8/4/2024 Rating announcement

      Scope downgrades Class A notes issued by Aqui SPV S.r.l. ...

      Italian NPL collections: note sales fall to almost zero in February

      8/4/2024 Research

      Italian NPL collections: note sales fall to almost zero in ...

      Scope downgrades class A notes notes issued by Siena NPL 2018 S.r.l. - NPL ABS

      2/4/2024 Rating announcement

      Scope downgrades class A notes notes issued by Siena NPL 2018 ...

      Scope affirms class A notes issued by VCL Master Sweden S.A. - Swedish Auto Lease ABS

      25/3/2024 Rating announcement

      Scope affirms class A notes issued by VCL Master Sweden S.A. ...