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Rpt fitch affirms dignitys finance plcs class a & b notes; stable outloo


(Repeat for additional subscribers)July 18 (The following statement was released by the rating agency)Fitch Ratings has affirmed Dignity's Finance plc's class A and B notes. A full list of rating actions is at the end of this release. KEY RATING DRIVERS The affirmation is principally supported by Dignity's stable performance, which is reflected in EBITDA growth above Fitch's base case assumption for 2013. The trailing-12-month to December 2013 EBITDA was GBP88m, effectively growing year-on-year by 12.7% (or a Fitch-estimated 7% when excluding the annualised impact of Yew Holdings, its most recent acquisition). The EBITDA margin has remained broadly flat year-on-year at 35.6%. This recent growth has been achieved through a combination of price and volume growth as well as acquisitions (which Fitch does not typically take into account for its base case forecast). Fitch's base case free cash flow (FCF) debt service coverage ratios (DSCRs) for the class A and B notes (minimum of both the average and median DSCRs to legal final maturity) remained broadly stable at 2.69x (from c. 2.72x) and 1.62x (from 1.68x), respectively. This base case conservatively assumes EBITDA growing at a compounded annual growth rate of 0.8% over the next 10 years. These solid DSCRs are also backed by an annuity-like debt profile, which contrary to other UK WBS transactions, removes any point in time stresses.

EBITDA leverage has decreased due to a combination of growth in EBITDA and amortisation of debt, allowing for a further decline in June 2014 to 1.8x for the class A notes and 3.9x for the class B notes (down from 2.0x and 4.3x, respectively, at tap in July 2013). The acquisition of properties on short leaseholds over the years (exceeding the acquisition of long lease/freeholds) means that Dignity has a material rental cost, currently representing about 12% of its EBITDA compared with 10% back in 2006. As a result, taking into account the senior debt-like characteristics of the rents, the rent-adjusted base case FCF DSCRs at 2.09x and 1.46x, respectively, for the class A and B notes are notably lower than the FCF DSCRs, albeit still in line with their ratings (notably for the most senior class A notes). The class A notes' rating is constrained by Fitch's rating cap for the funeral home industry, which prevents them from being rated above 'A+'. Although the funeral/crematoria services industry is largely non-cyclical and typically benefits from stable and predictable cash flow backed by strong fundamentals (with favourable demographics), it remains a highly fragmented niche market (led, with the exception of the Co-op, by small non-diversified companies) and hence is more vulnerable to any change in its operating environment (e.g. competitive landscape). The Stable Outlook is underpinned by the predictable and relatively stable nature of the industry. Despite a steady decline in Dignity's market share (due to increased local competition) and a reduction in the number of deaths in the UK in recent years, both impacting volumes, the company has consistently grown EBITDA through above inflation price increases (demonstrated low pricing elasticity to demand) and a selective acquisition strategy (of both funeral homes and crematoriums). An anticipated single digit increase in the number of deaths is anticipated to materialise around 2015 with the ageing of the baby boomer generation (source: ONS), thus providing further comfort about the sustainability of Dignity's future revenue stream.

RATING SENSITIVITIES The ratings could be adversely affected if performance dropped significantly below Fitch's base case, notably due to potential future lack of ability to apply above-inflation price increases or due to an accelerated loss in market share (with a change in competitive landscape). A significant increase in the number of short leaseholds could also negatively affect the ratings, as this could increase the operating leverage of the transaction (with the increase in senior debt-like rental payments obligations).

Dignity is a whole business securitisation of funeral homes and crematoria in the UK, comprising 697 funeral homes and 39 crematoria. The Dignity group is the second-largest provider of funeral services in the UK and the largest provider of crematoria services. The rating actions are as this site class A secured fixed rate notes due 2023: affirmed at 'A+'; Outlook StableGBP206.3m class B secured fixed rate notes due 2031: affirmed at 'BBB+'; Outlook Stable

Rpt fitch assigns fct ginkgo compartment sales finance 2013 1 expected rat


(Repeat for additional subscribers)Nov 27 (The following statement was released by the rating agency)Fitch Ratings has assigned FCT Ginkgo Compartment Sales Finance 2013-1's notes expected ratings as this site TBD Class A: 'AAA(EXP)sf'; Outlook StableEUR TBD Class B: 'AA(EXP)sf'; Outlook StableEUR TBD Class C: 'A+(EXP)sf'; Outlook StableEUR TBD Class D: NR(EXP)The final ratings are contingent upon the receipt of final transaction documents, in line with those already received and analysed, as well as the satisfactory review of the transaction legal opinions to support the agency's analytical approach.

The expected ratings are based on Fitch's assessment of CA Consumer Finance's (CACF, A/Stable/F1) origination and servicing procedures in its capacity as originator and servicer of the transaction, the agency's expectations of future asset performance in the light of the current and forecast economic environment in France, the available credit enhancement and the transaction's legal structure. KEY RATING DRIVERS Fitch views the key rating drivers for the transaction as being (i) the underlying receivables credit risk; (ii) the early amortisation triggers in place, which along with eligibility criteria portfolio limits and available CE, prevent deterioration of the portfolio quality during the revolving period; (iii) the monthly transfer of borrowers' details, the commingling reserve and the reserve fund, which together with other provisions adequately mitigate servicing continuity risks; and (iv) the stable to declining asset performance outlook for French consumer assets.

TRANSACTION CHARACTERISTICS The issuance proceeds will be used to purchase a portfolio of consumer loan receivables including home equipment, recreational vehicle, new vehicle and used vehicle loans originated by CACF, the consumer finance arm of Credit Agricole (A/Stable/F1) in France. This is CACF's seventh consumer loans securitisation transaction. The transaction envisages a 12-month revolving period, during which further receivables can be transferred to the issuer each month. In Fitch's view, the early amortisation triggers in place, along with eligibility criteria, portfolio limits and available CE, adequately address the risk of a significant deterioration of the underlying asset quality. However, in line with its criteria, the agency has taken into account possible migration to a riskier pool composition allowed by the portfolio limits.

Credit enhancement for the class A notes will be equivalent to 25.3% at closing, provided by overcollateralisation via subordination and a reserve fund. Subordination for the class A notes will be provided by the class B notes (6.1%), the class C notes (4.6%) and the class D notes (13.1%). In addition, a reserve fund, representing 1.5% of the initial notes balance and primarily available for liquidity, will provide credit enhancement at maturity or if an accelerated amortisation event has occurred. Finally, the transaction will benefit from excess spread. The provisional portfolio amounted to EUR756.2m as of end-September 2013 and consisted of 94,873 loan contracts, with an average outstanding principal balance of EUR7,971 and a weighted average remaining term of 74.3 months. All the loans bear a fixed interest rate and are amortising with constant monthly instalments. RATING SENSITIVITIES Fitch tested the rating sensitivity of the notes to various scenarios, including an increase in the base case default rate and/or a decrease in the base case recovery rate for the portfolio. The model- implied sensitivities indicate that an increase in the base case default rate by 50% together with a decrease in the base case recovery rate by 50% may result in a five-notch downgrade of the class A notes, to 'Asf' from 'AAAsf', a five-notch downgrade of the class B notes, to 'BBB+sf' from 'AAsf' and a five-notch downgrade of the class C notes to 'BBB-sf' from 'A+sf'. A presale report, including further information on transaction related stress, key rating drivers and rating sensitivities, as well as material sources of information that were used to prepare the credit rating, is available at this site Link to Fitch Ratings' Report: FCT Ginkgo Compartment Sales Finance 2013-1here var $relatedItems = $('lia "/article/idUSFWN1EU0JJ"BRIEF-Sesac says it will be acquired by Blackstone/a/lilia "/article/riyad-bank-dividend-idUSD5N1E9002"Saudi\'s Riyad Bank recommends lower cash dividend for H2 2016/a/li'), $relatedItems = $relatedItems.slice(0,10), relatedBlockLimit = Number('6'), relatedItemsTotal = $relatedItems.length, $paragraphTags = $('#article-text p'), contentParagraphs = 0, minParagraphs = Number("8"); for (i=0; i $paragraphTags.length; i++) { if ($paragraphTags[i].innerText.trim().length 0) { contentParagraphs = contentParagraphs + 1; } } if (contentParagraphs minParagraphs) { setTimeout(function(){ if (relatedItemsTotal relatedBlockLimit) { $('.first-article-divide').append('div class="related-content group-one"h3 class="related-content-title"Also In Financials/h3ul/ul/div'); $('.second-article-divide').append($('.slider.slider-module')); $('.third-article-divide').append('div class="related-content group-two"h3 class="related-content-title"Also In Financials/h3ul/ul/div'); var median = (relatedItemsTotal / 2); var $relatedContentGroupOne = $('.related-content.group-one ul'); var $relatedContentGroupTwo = $('.related-content.group-two ul'); $.each($relatedItems, function(k,v) { if (k + 1 = median) { $relatedContentGroupOne.append($relatedItems[k]); } else { $relatedContentGroupTwo.append($relatedItems[k]); } }); } else { $('.third-article-divide').append($('div class="related-content group-one"h3 class="related-content-title"Also In Financials/h3ul/ul/div')); $('.related-content ul').append($relatedItems); } },500); } Next In Financials BRIEF-CME Group reached record average daily volume of 15.6 mln contracts in 2016 * Cme group reached record average daily volume of 15.6 million contracts in 2016, up 12 percent from 2015 Dubai Islamic Bank requests proposals for dollar sukuk - sources DUBAI, Jan 4 Dubai Islamic Bank (DIB) has asked banks to submit proposals to arrange a potential U.S. dollar-denominated sukuk issue, sources familiar with the situation said on Wednesday. BRIEF-Colliers International UK acquires hospitality asset management firm * Colliers international uk acquires market leading hospitality asset management firm MORE FROM REUTERS window._taboola = window._taboola || []; _taboola.push({ mode: 'organic-thumbnails-a', container: 'taboola-recirc', placement: 'Below Article Thumbnails - Organic', target_type: 'mix' }); Sponsored Content @media(max-this site) { #mod-bizdev-dianomi{ height: 320px; } } From Around the Web Promoted by Taboola window._taboola = window._taboola || []; _taboola.push( { mode: 'thumbnails-3X2', container: 'taboola-below-article-thumbnails', placement: 'Below Article Thumbnails', target_type: 'mix' } ); window._taboola = window._taboola || []; _taboola.push

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