Scope Ratings GmbH (Scope) monitors and reviews its credit ratings on an ongoing basis and at least annually, or every six months in the case of sovereigns, sub-sovereigns and supranational organisations.

Scope performs monitoring reviews to determine whether material changes and/or changes in macroeconomic or financial market conditions could have an impact on the credit ratings. Scope considers all available and relevant information when undertaking the monitoring review.

Monitoring reviews are conducted by performing a peer comparison, benchmarking against the rating-change drivers, and/or reviewing the credit ratings’ performance over time, as deemed appropriate by the Lead Analyst or Analytical Team Head, in addition to an assessment of all aspects of the relevant methodologies, including key rating assumptions and models. Scope publicly announces the completion of each monitoring review on its website.

Scope completed the monitoring review for Prosil Acquisition S.A. on 9 April 2024. The credit ratings remain as follows:

Class A (ISIN XS1843432078), EUR 87.9m outstanding amount: BB-_SF

Class B (ISIN XS1843431930), EUR 30.0m outstanding amount: C_SF

Class J (ISIN XS1843431856), EUR 15.0m outstanding amount: not rated

Class Z (ISIN XS1843431773), EUR 16.0m outstanding amount: not rated

The review was conducted considering available transaction reports up to January 2024 and the revised business plan as of March 2024.

This monitoring note does not constitute a credit rating action, nor does it indicate the likelihood that Scope will conduct a credit rating action in the short term. Information about the latest credit rating actions connected with this monitoring note along with the associated rating history can be found on www.scoperatings.com.

Key Rating factors

Rating factors assessed during the monitoring review include realised profitability on closed positions, the timing of cumulative collections, the amount of recovery expenses and the current macro-economic scenario, against Scope’s expectations.

The transaction has incurred higher than expected expenses. This has led to slower than expected rate of notes repayment. Class B interest continues to be subordinated due to slow pace of collections and cumulative net collections ratio (45.0%) being much lower than the trigger level of 90.0%.

The ratings also consider the issuers’ exposure to key counterparties, the legal and structural protection provided to the notes, the liquidity protection and the interest rate hedging agreements.

The methodologies applicable for the reviewed ratings (General Structured Finance Rating Methodology, 6 March 2024; Non-Performing Loan ABS Rating Methodology, 3 August 2023; Counterparty Risk Methodology, 13 July 2023) are available on https://scoperatings.com/governance-and-policies/rating-governance/methodologies.
This monitoring note is issued by Scope Ratings GmbH, Lennéstraße 5, D-10785 Berlin, Tel +49 30 27891-0.
Lead analyst Shashank Thakur, Senior Analyst
 
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