Fitch Ratings said that the Bank of Spain's take-over of Caja Castilla La Mancha (CCM) will have litte impact on structured finance deals.
According to Fitch, the intervention will have neutral to a net positive from a ratings perspective for structured finance transactions involving CCM. No adverse rating action is therefore anticipated for any of the securitizations involving CCM as counterparty or servicer.
On March 29, the Bank of Spain announced that it was formally taking over the management of CCM and providing the entity with up to 9 billion in financing backed by government loan guarantees. The government-backed financing will be available to meet depositor and other third party claims. While the bank remains operationally intact and functioning, three administrators from the Bank of Spain will manage CCM going forward.
Fitch rates two structured finance transactions issued and serviced by CCM: TDA Consumo CCM 1 and AyT Colaterales Global Hipotecario CCM 1. CCM is also a participant in two multi-issuer RMBS transactions: TDA 7 and 24. Lastly, CCM participates in two CDO securitizations of Spanish savings bank unsecured debt, AyT Bonos Tesoreria 1, FTA and AyT CEAMI EMTN Cajas 1.
Based on discussions with CCM and the Bank of Spain, the securitizations will continue to be managed according to established guidelines and provisions. As CCM structured finance transactions do not provide for a back-up servicing arrangement, the bank will continue to act as servicer for all outstanding deals.
Fitch said that the appointment of Bank of Spain external administrators will prove positive as it may allow for a more organized servicing transition in the future, should it prove necessary.
