Connect with us

Top Stories

EFL Lease ABS 2017-1 exhibits a stable performance – SME Auto & Vehicle leasing ABS

EFL Lease ABS 2017-1 exhibits a stable performance – SME Auto & Vehicle leasing ABS

Scope Ratings has reviewed the performance of EFL Lease ABS 2017-1, which remains in line with expectations. No rating action is warranted as a result.

Early amortisation triggers in the transaction are in compliance and replenishment covenants that protect against portfolio credit deterioration have not been breached since closing. The transaction continues to meet replenishment covenants. The replenishment period ends on 25 October 2020, unless a trigger fails. Scope’s analysis is based on quarterly reporting provided by Citibank N.A, up to 27 April 2018.

Portfolio segmentation has been stable up to the last payment date, with a stable pool performance. The 0.42% gross loss ratio is well below the 3% early-amortization trigger level, with a significant excess spread generation of 5.5%. Credit enhancement for the senior bond is unchanged at 20.6%.

The transaction is a true-sale cash securitisation of a PLN 2,200m lease receivables portfolio with a three-year revolving period. The Polish lease receivables are originated by EuropejskiFunduszLeasingowy S.A. (EFL) in its ordinary course of business. The portfolio at closing comprises of leases mainly to Polish SMEs (98.2%), and a smaller amount to larger corporate borrowers (1.8%). Leases finance new and used light vehicles (26.6% / 11.7%), new and used trucks and trailers (7.3% / 14.7%) and new and used machinery and equipment (26.5% / 13.3%). Citibank N.A. London Branch is the issuer account bank. This transaction does not securitise receivables related to the leased objects´ residual value. The portfolio composition and profile is expected to change as a result of replenishments, within reasonable limits.

Scope continuously monitors EFL Lease ABS 2017-1.

Ratings and research are freely available at www.scoperatings.com.

Editorial & Advertiser disclosure
Our website provides you with information, news, press releases, Opinion and advertorials on various financial products and services. This is not to be considered as financial advice and should be considered only for information purposes. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third party websites, affiliate sales networks, and may link to our advertising partners websites. Though we are tied up with various advertising and affiliate networks, this does not affect our analysis or opinion. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you, or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish sponsored articles or links, you may consider all articles or links hosted on our site as a partner endorsed link.
Global Banking and Finance Review Awards Nominations 2021
2021 Awards now open. Click Here to Nominate

Recommended

Newsletters with Secrets & Analysis. Subscribe Now