The current ratings on the class A and class B are available here and here, respectively.

Riviera SPV S.r.l. is a static cash securitisation of a EUR 964m portfolio (as of closing) of non-performing loans (NPLs) extended to companies and individuals in Italy. The loans were originated by Banca Carige S.p.A. and Banca del Monte di Lucca S.p.A. The transaction closed on 17 December 2018.

The cumulative collection ratio stands at 112.9% of the business plan through the first interest payment date (31 July 2019). The profitability ratio is 107.3% through the same period. Scope’s review was based on available payment information, investor reports and servicer reports as of December 2019.

Aggregate gross collections since the cut-off date are EUR 21.4m – 80% of which is from open debtors (i.e., debtors for which the recovery process is still ongoing). This figure represents about 7.4% of Scope’s expected lifetime collections considered for the analysis of the class A notes. The amount and timing of collections are above Scope’s expectations assumed at closing.

The composition of gross proceeds are ad-interim collections (53.8%), judicial proceeds (20.4%), and DPO proceeds (15.8%). Collections sources for closed positions were ad-interim collections (56.4%), DPO proceeds (28.4%) and other sources (15.2%).

No interest subordination event has occurred, since both the cumulative collections ratio and the cumulative profitability ratio (112.9% and 107.3%, respectively) are above the 90% trigger level.

The transaction is exposed to i) Credito Fondiario S.p.A. as master servicer and special servicer; ii) Italfondiario S.p.A. as special servicer; iii) Securitisation Services S.p.A. as back-up master servicer, noteholders’ representative, calculation agent and corporate servicer; iv) BNP Paribas Securities Services as account bank, paying agent, cash manager and agent bank; v) Intesa Sanpaolo S.p.A. as collection account bank; vi) Zenith Service S.p.A. as monitoring agent; and vii) JP Morgan AG as the interest rate cap provider. All counterparties continue to be supportive for the rating.

Scope will continue to monitor Riviera SPV S.r.l. on an ongoing basis.

Ratings and research are freely available at www.scoperatings.com.