DBRS Publishes “Improving Prospects for Non-Performing Loan Securitisations” Commentary
ABCP, Auto, RMBSDBRS Ratings Limited (DBRS) released a commentary on the improving prospects for Italian Non-Performing Loan (NPL) securitisations.
This commentary explains recent law changes in Italy and the impact that they could have on the securitisation market. The amendment to the Italian securitisation law is specifically aimed at securitisation receivables classified as impaired and carried out by securitisations established under the law.
These amendments include:
(1) Allowing the securitisation vehicles to advance loans to debtors;
(2) Allow for reorganisation plans between debtor and servicer to help restructure enterprise loans;
(3) Ability to have Real Estate Owned Companies (ReoCos) as additional SPVs (including leasing) in the context of an NPL securitisation; and
(4) Simplification of the publication requirements for receivables that can not be identified as selected based on a “block criteria” in the context of an NPL securitisation.
DBRS also provides further comments on recent NPL activity from Italian banks and announcements from the European Commission on NPLs and securitisations within the commentary.
Notes:
Information regarding DBRS ratings, including definitions, policies and methodologies, is available on www.dbrs.com.
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