Frankfurt am Main, December 04, 2012 -- Moody's has determined that the proposed action of Santander Consumer Bank as originator, seller and servicer (the "Bank") to take no action following the A3 Second Swap Rating Trigger for the interest rate swap counterparty replacement (Banco Santander SA (Baa2/P-2)) in the various Swap Agreements for each transaction (the "Proposal") will not, in and of itself at this time result in a reduction or withdrawal of the current ratings of the notes (the "Notes") issued by SC Germany Auto 06 Plc, SC Germany Auto 2009-1 Limited and SC Germany Consumer 11-1 Limited (the "Issuers"). Moody's does not express an opinion as to whether the proposal may be considered to have negative effects in any other respect.
Please note that the Swap agreements refer to 3 separate transactions and hence Moody's assessed the Proposal on each transaction separately. Moody's has assessed the Proposal described above that the Bank has decided to take. Moody's has made this determination based on, among other things, the degree of compliance with the Framework for De-Linking Hedge Counterparty Risks from Global Structured Finance Cashflow Transactions published in October 2010, along with Banco Santander SA's current long-term and short-term ratings of Baa2 and P-2. In addition, Moody's has viewed factors such as the current credit enhancement of the transaction available under each rated Note.
Moody's has assessed the probability and impact of a default of the swap counterparty on the ability of the Issuers to meet its obligations under the transaction, including the impact of the loss of any benefit from the swap.
The principal methodology used in rating SC Germany Auto 06 Plc and SC Germany Auto 2009-1 Limited was Moody's Approach to Rating European Auto ABS published in November 2002.The principal methodology used in rating SC Germany Consumer 11-1 Limited was Moody's Approach to Rating Consumer Loan ABS Transactions published in October 2012. Please see the Credit Policy page on www.moodys.com for a copy of these methodologies.
Moody's noted that on 2 July 2012, it released a Request for Comment, in which the rating agency has requested market feedback on potential changes to its rating implementation guidance for its "Approach to Assessing Linkage to Swap Counterparties in Structured Finance Cashflow Transactions". If the revised rating implementation guidance is implemented as proposed, the rating on the Notes should not be negatively affected. Please refer to Moody's Request for Comment, entitled "Approach to Assessing Linkage to Swap Counterparties in Structured Finance Cashflow Transactions: Request for Comment" for further details regarding the implications of the proposed methodology changes on Moody's ratings.
Moody's will continue to monitor the ratings. Any change in the ratings will be publicly disseminated by Moody's through appropriate media.
Please see ratings tab on the issuer/entity page on www.moodys.com for the last rating action and the rating history.
Sebastian Schranz Analyst Structured Finance Group Moody'sDeutschland GmbH An der Welle 5 Frankfurt am Main 60322 Germany JOURNALISTS: 44 20 7772 5456 SUBSCRIBERS: 44 20 7772 5454 Alex Cataldo Associate Managing Director Structured Finance Group Telephone:+39-02-9148-1100 Releasing Office: Moody's Deutschland GmbH An der Welle 5 Frankfurt am Main 60322 Germany JOURNALISTS: 44 20 7772 5456 SUBSCRIBERS: 44 20 7772 5454 (C) 2012 Moody's Investors Service, Inc. and/or its licensors and affiliates (collectively, "MOODY'S"). All rights reserved.
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