A-Best 18: 11 November 2020
The proceeds of the issue of the Notes will be applied to fund the purchase of an initial pool of monetary receivables and other connected rights arising from a portfolio of auto loans granted by FCA Bank S.p.A. to retail customers for the purposes of purchasing cars. During the Revolving Period the Originator may, subject to the satisfaction of certain conditions, sell to the Issuer, on a monthly basis, additional pools of monetary receivables and other connected rights arising from further portfolios of auto loans granted by FCAB to retail customers for the purposes of purchasing cars and having substantially the same characteristics as the Initial Pool. The principal source of payment of interest and, during the Amortisation Period, of repayment of principal on the Notes will be collections and recoveries made in respect of the Portfolio.
Eligibility criteria (includes): the Originator is the sole creditor and owner of the Receivable including any Related Claims and Rights and the Loan Collateral; it results from a Loan Agreement that constitutes either a Classic Loan, a Formula Loan or a Balloon Loan; at least one Instalment is recorded as fully paid; no Instalments are due and unpaid; it is owed by a Borrower which is, as at the time of entering into the relevant Loan Agreement, a physical person (persona fisica) resident in Italy, with Italian nationality and, as at the relevant Pool Transfer Effective Date, is not a FCAB employee; it arises from a Loan Agreement governed by Italian law and is denominated in Euro; at least two Instalments of the Loan Agreement have already been duly recorded by FCAB as paid by the relevant Borrower; it amortises on a monthly basis; the Loan was granted solely for the purpose of financing the purchase of a Vehicle.
As at the portfolio cut-off date the portfolio comprised of 25,121 leases granted to 22,574 lessees, where the average net present value loan (NPV) is Eur8,956 and the largest borrower concentration is of Eur426,172 (representing 0.189% of current balances). LesseeType (by no of contracts / % outstanding principal): Legal Person – 15,138 / 64.39%, Physical Person 9,983 / 35.61%. Car type (by NPV): new 100%. WA seasoning is 20.4mnths. Regional concentration : North – 55.60%, Centre – 24.15% and South – 20.25%.
EU Risk Retention: FCAB, in its capacity as Originator, has undertaken that it will retain, on an on-going basis, a material net economic interest of not less than 5% in the securitisation in accordance with option (a) of Article 6(3) of the EU Securitisation Regulation.
US Risk Retention: The Originator does not intend to retain at least 5% of the credit risk of the Issuer for the purposes of the U.S. Risk Retention Rules, but rather intends to rely on an exemption provided for in Section __.20 of the U.S. Risk Retention Rules regarding non-U.S. transactions.
Compare/contrast: A-Best 17, Auto ABS Italian Rainbow Loans 2020-1, Sunrise SPV Z90 (2020-1)