Titan SPV S.r.l. is a static cash securitisation of an Italian non-performing lease portfolio, with gross book value (GBV) of around EUR 335m at closing. Prelios Credit Servicing S.p.A. is the special and master servicer. The portfolio was originated by Alba Leasing S.p.A. (57% of GBV), Release S.p.A. (26% of GBV) and Banco BPM S.p.A. (17% of GBV). The transaction closed on 28 December 2020, with its legal maturity falling in January 2041.

At closing, the portfolio consisted of disposable leased assets for a share of 59.2% of GBV and of 81 non-immediately disposable leased assets (i.e., non-repossessed assets, repossessed assets not yet regularised, or assets subject to specific laws or contractual provisions) for a share of 40.8% of GBV. The originators had undertaken to either transfer the non-immediately disposable assets to Zeus LeaseCo S.r.l. by 30 June 2021, or to return the original purchase prices (plus indemnity amounts) for those leased assets that are not yet eligible to be transferred by 30 June 2021.

Scope acknowledges that 74 of those 81 assets will effectively be either transferred or repurchased by the originators by 30 June 2021, while the remaining 7 assets (share of 2% of closing GBV) will be either transferred or repurchased (at the original purchase price plus indemnity amounts) by 30 November 2021, as per the amendments to the transaction documents.

Scope’s analysis only covers the credit impact associated with the amendments described above. Scope has not addressed other non-credit related effects that may be relevant for investors and/or counterparties when assessing the impact of said amendments.

This announcement does not constitute a rating action nor indicates the likelihood of a credit rating action in the short term. The latest information on the credit ratings of Titan SPV S.r.l. along with the associated rating history can be found on www.scoperatings.com.