Frankfurt am Main, December 12, 2012 -- Moody's has determined that the amendment of rating triggers linked to Santander Consumer Finance S.A., the servicer's parent, executed on 11th December 2012, will not, in and of itself and at this time, result in a downgrade or withdrawal of the current ratings of the notes (the "Notes") issued by Bilkreditt 2 Limited (the "Issuer"). Moody's opinion addresses only the credit impact of the proposed action, and Moody's is not expressing any opinion as to whether the action has, or could have, other non-credit related effects that may have a detrimental impact on the interests of noteholders.
Moody's has considered the amendment described above, in relation to the downgrade of the Santander Consumer Finance S.A. to Baa2, Possible Downgrade on 25th June 2012. The rating of Santander Consumer Finance S.A. was subsequently confirmed at Baa2 on 24th October 2012.
Under the amendment, the requirement to terminate the servicing agreement if the rating of Santander Consumer Finance S.A. ceases to be rated Baa3 or higher was removed. In addition, the requirement to notify borrowers of the sale and redirect borrower payments to an issuer account was lowered to loss of Baa3 (currently triggered if the rating of Santander Consumer Finance S.A. ceases to be rated Baa2, or if Santander Consumer Finance S.A. is rated Baa2 but on review for possible downgrade). The structure however also envisions that failing this trigger would result in the obligation to appoint a back-up servicer.
Moody's has assessed the impact of the above changes in its analysis. Moody's notes the transaction benefits from (i) a commingling reserve sized at approximately one month of collections, (ii) a daily sweep of collections, (iii) a non-amortising liquidity reserve initially sized at approximately 9.5 months of collections and senior expenses, and (iv) a trigger to appoint a back-up servicer upon loss of Baa3.
The principal methodology used in this rating was "Moody's Approach to Rating European Auto ABS", published in November 2002. Please see the Credit Policy page on www.moodys.com for a copy of this methodology.
Other factors used in this rating are described in "The Lognormal Method Applied to ABS Analysis", published in July 2000.
Moody's will continue to monitor the ratings of the transaction. Any change in the ratings will be publicly disseminated by Moody's through appropriate media.
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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