Scope Ratings has reviewed the performance of Globaldrive Germany Retail VFN 2011 BV and has taken no rating action based on this. (The current rating is available here.) Credit enhancement has increased to 22.4% for the class A notes, up from 12.5% at closing. Performance is better than expected, as assets more than 90 days past due represent only 0.25% of the outstanding non-defaulted assets. The liquidity reserve amounts to 1.15% of the outstanding non-defaulted assets. Additionally, sufficient excess spread is available to protect the class A notes from losses. Performance was assessed from data provided through 30 December 2019. Scope’s internal assessment indicates an elevated counterparty risk since closing with i) the account bank and paying agent, Deutsche Bank AG London Branch mitigated by complying replacement mechanisms; and ii) the servicer, FCE Bank plc, mitigated by a fully funded and well sized commingling reserve. No change in risk exposure with swap provider, Lloyds bank plc.

The transaction is a true-sale securitisation of a still granular EUR 219.7m static portfolio (EUR 434.8m at closing) of amortising auto loans granted to private individuals in Germany. The fixed rate loans were originated by FCE Bank plc, the European financial services provider of Ford Motor Company. The transaction closed on 13 December 2011 and was last amended on 26 April 2018. The class A notes have amortised to EUR 173.0m as of 30 December 2019.