Milan-based Agos Ducato plans to issue securities backed by a €1.35 billion ($1.84 billion) portfolio of unsecured Italian consumer loan receivables, according to DBRS.

The deal dubbed Sunrise, Series 2014, is backed by loans that were underwritten to retail clients and originated and serviced by Agos.  

DBRS expects to rate the €800 million tranche of class A1 notes ‘AAA’. The notes have credit enhancement at 41.33%. The €303 million class M notes have been assigned a preliminary ratings of ‘A’. DBRS will not rate €301.7 million of class J notes.

Agos is the largest consumer credit lender in Italy with an 11.5% market share, according to DBRS. New loan production in 2013 totaled €5.2 billionn with personal loans (50%), auto loans (15%) and credit cards (20%) comprising the bulk of the portfolio.

The pool of receivables is comprised of 71.96% of flexible Loans, which allows the borrower to either skip a monthly installment (one installment per year for up to five times over the life of the loan, with the skipped installment to be postponed to the end of the original amortization plan), or modify the amount of the monthly installments.

Credit Agricole and Banca Aletti & C. are the lead arrangers.

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