Scope completed a monitoring review of the following notes issued by EFL Lease ABS 2017-1 DAC on 05 March 2021. The transaction is a true-sale cash securitisation of a PLN 2,200m lease receivables portfolio with a three-year revolving period, which has ended on 27 October 2020.

Class A1 (ISIN XS1701862143): PLN 850.9m outstanding amount: AAA_SF

Class A2 (ISIN XS1701862499): PLN 596.6m outstanding amount: AAA_SF

Scope performs monitoring reviews to determine whether outstanding ratings remains proportionate. Monitoring reviews are conducted either by performing a portfolio review in terms of the applicable methodology/ies, latest developments, and the rated entity’s financial and operational aspects relative to similarly rated peers; or through targeted reviews on an individual credit. Scope publicly announces the completion of each monitoring review on its website.

Scope Ratings reviews its ratings either yearly, or every six months in the case of sovereigns, sub-sovereigns and supranational organisations. Monitoring reviews are unrelated to the calendar that outlines public finance rating actions.

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 on  www.scoperatings.com.

Key rating factors

The rating of the class A notes is strongly supported by the transaction’s deleveraging. Since the end of the revolving period in October 2020, available credit enhancement on the class A1 and A2 notes has increased to 24.2% as of December 2020, from 20.6% at closing.

Portfolio segmentation and performance have been relatively stable up to the last payment date. The 2.38% gross loss ratio and the 0.98% three-month rolling average late delinquency rate are below Scope’s expectations from closing. There is significant excess spread at 4.63%.

The methodologies applicable for the reviewed ratings (General Structured Finance Rating Methodology, 14 December 2020; Consumer and Auto ABS Rating Methodology, 3 March 2021; Methodology for Counterparty Risk in Structured Finance, 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 Cyrus Mohadjer, Senior Analyst

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