Moody's Determines no negative rating impact on Locat Securitisation Vehicle 2 S.r.l. and Locat SV S.r.l. -- Series 2006 (LSV 4) following changes in definition of eligible investments
Frankfurt am Main, November 22, 2012 -- Moody's has determined that the proposed action (the "Proposal") of the servicer (Unicredit Leasing S.p.A.) to amend the definition of the eligibility investments being at least rated Baa3 or P3 and Baa2 or P-2 by Moody's for investments with a maturity of up to 1 month and between 1 month and 3 months in relation to the Master Definitions Agreement should not, if implemented, in and of itself at this time result in a reduction or withdrawal of the current ratings of the notes issued by Locat Securitisation Vehicle 2 S.r.l. and Locat SV S.r.l. -- Series 2006 (LSV 4) (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.
Moody's has assessed the Proposal to amend the eligibility investments definition by lowering the minimum rating to Baa3 or P3 and Baa2 or P-2 by Moody's for investments with a maturity of up to 1 month and between 1 month and 3 months respectively. In determining the impact of these amendments on the current Moody's ratings of the Notes, Moody's assessed, among other factors the highest current rating on the Notes which is A2 (sf) and the probability and impact of a default of the investments on the ability of the Issuers to meet their obligations under the transactions.
The methodologies used in these ratings were "Moody's Approach to Rating Multi-Pool Financial Lease-Backed Transactions in Italy" published in June 2006, "Refining the ABS SME Approach: Moody's Probability of Default assumptions in the rating analysis of granular Small and Mid-sized Enterprise portfolios in EMEA" published in March 2009 and "Moody's Approach to Rating Granular SME Transactions in Europe, Middle East and Africa" published in June 2007. Please see the Credit Policy page on www.moodys.com for a copy of these methodologies.
Other Factors used in this rating are described in "The Temporary Use of Cash In Structured Transactions: Eligible Investment Guidelines" published on December 9, 2008.
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 the temporary use of cash in structured finance 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 "The Temporary Use of Cash in Structured Finance Transactions: Eligible Investment and Bank Guidelines: Request for Comment" for further details regarding the implications of the proposed methodology changes on Moody's ratings.
Please see ratings tab on the issuer/entity page on www.moodys.com for the last rating action and the rating history.
Ludovic Thebault 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 Thorsten Klotz MD - Structured Finance Structured Finance Group JOURNALISTS: 44 20 7772 5456 SUBSCRIBERS: 44 20 7772 5454 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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