- On July 1, 2020 we placed on CreditWatch negative our rating on the Gamma's Atlantes Mortgage No. 7's class A notes.
- Following our review of this transaction under our relevant criteria, we have lowered and removed from CreditWatch negative our rating on the class A notes.
- Atlantes Mortgage No. 7 is a Portuguese RMBS transaction, which closed in November 2010. BANIF Banco Internacional do Funchal (currently part of Banco Santander Totta) originated the loans in the pool.
MADRID (S&P Global Ratings) Sept. 25, 2020--S&P Global Ratings today lowered to 'A+ (sf)' from 'AA (sf)' and removed from CreditWatch negative its credit rating on the class A notes in GAMMA Sociedade de Titularizacao de Creditos S.A.'s Atlantes Mortgages No. 7.
Today's rating actions follow our July 1, 2020, CreditWatch negative placement of our rating on the class A notes (see "GAMMA's Portuguese RMBS Transaction Atlantes Mortgage No. 7's Class A Rating Placed On CreditWatch Negative"). Under the transaction documents, the issuer commits to replace the account bank if it fails to maintain the minimum eligible rating. The account provider, HSBC Bank PLC, is currently rated 'A+'. The minimum eligible rating under our counterparty criteria to support a 'AA (sf)' rating on the class A notes is 'A-'. Although the rating on the account bank remains above the minimum according to our counterparty criteria, it is lower than the current documented minimum rating in the transaction documents.
As the issuer has indicated that no remedy action has been implemented within the remedy period, we no longer view the replacement commitment as an effective mitigant to counterparty risk under our counterparty criteria. The rating on the class A notes is now weak-linked to our rating on HSBC Bank, as bank account provider. Therefore, we have lowered to 'A+ (sf)' from 'AA (sf)' and removed from CreditWatch negative our rating on the class A notes.
If new remedy actions are implemented in the future, we will analyze them in line with our counterparty criteria.
Atlantes Mortgage No. 7 is a Portuguese RMBS transaction, which closed in November 2010. BANIF Banco Internacional do Funchal (currently part of Banco Santander Totta) originated the loans in the pool.
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|Primary Credit Analyst:||Fabio Alderotti, Madrid (34) 91-788-7214;|
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