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 Popolare Bari NPLs 2017 S.r.l. on 28 October 2024. The credit ratings remain as follow:

Class A (ISIN IT0005316275), EUR 52.6m outstanding: C_SF

Class B (ISIN IT0005316283), EUR 10.1m outstanding: C_SF

Class J (ISIN IT0005316291), EUR 13.5m outstanding: not rated

The review was conducted considering available servicer reports, payment reports and investor reports up to October 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 evolution of transaction’s performance, Italy’s macro-economic outlook, the issuers’ exposure to key counterparties, the legal and structural protection provided to the notes, the liquidity protection and the interest rate hedge protection.

The timing of collections has been slower than initially expected, resulting in a slow deleveraging of class A notes. As of the October 2024 payment date, aggregate gross collections were EUR 51.4m, representing 44% of the original business plan projections. The pace of collections is also highly below Scope’s initial expectations. The net present value cumulative profitability ratio, computed for closed positions, stands at 89%, below the 90% threshold for class B interest subordination to class A principal repayment since October 2023 payment date. The liquidity reserve is at its target level.

The methodologies applicable for the reviewed ratings (General Structured Finance Rating Methodology, 6 March 2024; Non-Performing Loan ABS Rating Methodology, 2 August 2024; Counterparty Risk Methodology, 10 July 2024) 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 Stefano Bracchi, Specialist

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