Scope Ratings GmbH (Scope) monitors and reviews its credit ratings on an ongoing basis and at least annually, or every six months in the case of sovereigns, sub-sovereigns and supranational organisations.

Scope performs monitoring reviews to determine whether material changes and/or changes in macroeconomic or financial market conditions could have an impact on the credit ratings. Scope considers all available and relevant information when undertaking the monitoring review.

Monitoring reviews are conducted by performing a peer comparison, benchmarking against the rating-change drivers, and/or reviewing the credit ratings’ performance over time, as deemed appropriate by the Lead Analyst or Analytical Team Head, in addition to an assessment of all aspects of the relevant methodologies, including key rating assumptions and models. Scope publicly announces the completion of each monitoring review on its website.

Scope completed the monitoring review for Buonconsiglio 3 S.r.l. on 30 November 2021. The credit rating remains as follows:

Class A (ISIN IT0005428138), current balance EUR 145,150,510.9: BBB_SF

Class B (ISIN IT0005428146), current balance EUR 21,000,000.0: not rated

Class J (ISIN IT0005428153), current balance EUR 4,541,000.0: not rated

Buonconsiglio 3 S.r.l. is a static cash securitisation of an Italian non-performing loans portfolio worth around EUR 665.0m (EUR 679.0m at closing) by gross book value. The portfolio was originated by 38 Italian originator banks (see ‘Appendix I’ for the complete list of originators) and is serviced by Guber Banca S.p.A. as special servicer and Zenith Service S.p.A. as master servicer. The transaction closed on 14 December 2020 and the legal maturity is in January 2041. Scope does not rate the class B and J notes.

The review was conducted considering available servicer reports, payment reports and investor reports up to the July 2021 payment date, as subsequently amended in October 2021. This monitoring note does not constitute a credit rating action, nor does it indicate the likelihood that Scope will conduct a credit rating action in the short term. Information about the latest credit rating action connected with this monitoring note along with the associated rating history can be found on www.scoperatings.com.

Key rating factors

As of 30 July 2021, aggregate gross collections were EUR 14.5m, which is 127.1% of the original business plan’s gross expectations up to that date (EUR 11.4m). Total gross collections are split between bankruptcy distribution and auction sales (51.0%), discounted payoff proceeds (17.6%) and other types of collection (31.4%).

Around 69.3% of gross collections came from open debtors (i.e. debtors for which the recovery process is still ongoing). The servicer has closed debtors for a total gross book value of 2.1% of the transaction’s initial gross book value.

Class A has amortised by 5.7% since the issuance date. No interest subordination event for the class B interests has occurred, as the cumulative collection ratio and the net present value cumulative profitability ratio stood at 116.6% and 119.0% respectively, which is above the 90% threshold for the interest subordination event. No servicer underperformance event has occurred because both the cumulative collection ratio and the net present value cumulative profitability ratio were above the 95% threshold. Recovery expenses amounted to 19.8% of gross collections, which is higher than Scope’s recovery cost assumptions under its class A analysis.

All transaction counterparties continue to support the rating.

CREDIT-POSITIVE (+)

Cumulative net collections timing. Aggregate net collections (net of recovery expenses) are EUR 11.7m and have outpaced Scope’s timing expectations under its class A analysis.

Cumulative net collections against business plan. Aggregate net collections are higher than the original business plan net estimates by 16.6%.

CREDIT-NEGATIVE (-)

Profitability on secured borrowers. Collections on the closed secured debtors (i.e. positions for which the recovery procedure has been closed) are below Scope’s expectation for the B case scenario. However, the number of closed borrowers and their gross book value are currently limited in comparison with the total portfolio (34 borrowers representing 2.6% of the secured portfolio).

Italian economy. The Italian economy faced a weak economic growth rate in the first half of 2021 fuelled by the Covid-19 pandemic. Despite governmental support measures, increased collateral liquidity risk and weakened borrower liquidity positions could negatively affect the recovery prospects.

Appendix I
Originators
1. CASSA RURALE DOLOMITI - CREDITO COOPERATIVO ITALIANO
2. CASSA RURALE ROTALIANA E GIOVO - BANCA DI CREDITO COOPERATIVO - SOC. COOP.
3. BANCA DI CREDITO COOPERATIVO DI SPELLO E BETTONA SOCIETÀ COOPERATIVA
4. BANCA DI CREDITO COOPERATIVO DI CHERASCO - SOC. COOP.
5. BANCANAGNI CREDITO COOPERATIVO SOCIETÀ COOPERATIVA
6. CASSA RURALE VALSUGANA E TESINO - BANCA DI CREDITO COOPERATIVO SOCIETÀ COOPERATIVA
7. BANCA ADRIA COLLI EUGANEI - CREDITO COOPERATIVO SOCIETÀ COOPERATIVA
8. ROMAGNABANCA CREDITO COOPERATIVO ROMAGNA EST E SALA DI CESENATICO - SOCIETÀ COOPERATIVA
9. LA CASSA RURALE – CREDITO COOPERATIVO ADAMELLO GIUDICARIE VALSABBIA PAGANELLA - SOCIETÀ COOPERATIVA
10. CREDITO COOPERATIVO - CASSA RURALE ED ARTIGIANA DEL FRIULI VENEZIA GIULIA - SOCIETÀ COOPERATIVA
11. BANCATER CREDITO COOPERATIVO FVG - SOCIETÀ COOPERATIVA
12. CASSA RURALE ALTA VALLAGARINA E LIZZANA - BANCA DI CREDITO COOPERATIVO - SOCIETÀ COOPERATIVA
13. BANCA DI CREDITO COOPERATIVO DI CASTAGNETO CARDUCCI SOCIETÀ COOPERATIVA PER AZIONI
14. BANCA CENTRO LAZIO CREDITO COOPERATIVO - SOCIETÀ COOPERATIVA
15. BANCA DI CREDITO COOPERATIVO DELLA ROMAGNA OCCIDENTALE - SOCIETÀ COOPERATIVA
16. BCC FELSINEA - BANCA DI CREDITO COOPERATIVO DAL 1902 SOCIETÀ COOPERATIVA
17. BANCA MALATESTIANA - CREDITO COOPERATIVO - SOCIETÀ COOPERATIVA
18. CASSA PADANA BANCA DI CREDITO COOPERATIVO SOCIETÀ COOPERATIVA
19. BANCA DI CARAGLIO, DEL CUNEESE E DELLA RIVIERA DEI FIORI SCRL - CREDITO COOPERATIVO
20. BANCA DEL VENETO CENTRALE CREDITO COOPERATIVO SOC. COOP.
21. BANCA DEL TERRITORIO LOMBARDO - CREDITO COOPERATIVO - SOCIETÀ COOPERATIVA
22. BANCA MONTE PRUNO - CREDITO COOPERATIVO DI FISCIANO, ROSCIGNO E LAURINO - SOC. COOP.
23. BANCA DI CREDITO COOPERATIVO DI SAN GIOVANNI ROTONDO - SOCIETÀ COOPERATIVA
24. BANCA PREALPI SAN BIAGIO CREDITO COOPERATIVO - SOCIETÀ COOPERATIVA
25. BANCA LAZIO NORD CREDITO COOPERATIVO SOC. COOP. PER AZIONI
26. BANCA DI CREDITO COOPERATIVO LA RISCOSSA DI REGALBUTO - SOCIETÀ COOPERATIVA
27. CASSA CENTRALE BANCA CREDITO COOPERATIVO ITALIANO S.P.A.
28. CASSA DI TRENTO, LAVIS, MEZZOCORONA E VALLE DI CEMBRA BANCA DI CREDITO COOPERATIVO - SOCIETÀ COOPE
29. BANCO MARCHIGIANO CREDITO COOPERATIVO
30. BANCA SICANA – CREDITO COOPERATIVO DI SOMMATINO, SERRADIFALCO E SAMBUCA DI SICILIA – SOCIETÀ COOPERATIVA
31. BENE BANCA CREDITO COOPERATIVO DI BENE VAGIENNA (CUNEO) S.C.
32. CREDITO COOPERATIVO CENTRO CALABRIA SOC. COOP.,
33. BANCA POPOLARE DI CORTONA SOCIETÀ COOPERATIVA PER AZIONI
34. BANCA POPOLARE DI LAJATICO SOCIETÀ COOPERATIVA PER AZIONI
35. MEDIOCREDITO TRENTINO-ALTO ADIGE S.P.A.
36. BANCA POPOLARE DELL'ALTO ADIGE S.P.A.
37. BANCA SELLA S.P.A.
38. CASSA DI RISPARMIO DI CENTO S.P.A.

The methodologies applicable for the reviewed rating (General Structured Finance Rating Methodology, 14 December 2020; Non-Performing Loan ABS Methodology, 6 August 2021; Methodology for Counterparty Risk in Structured Finance, 13 July 2021) are available on https://www.scoperatings.com/#!methodology/list.
This monitoring note is issued by Scope Ratings GmbH, Lennéstraße 5, D-10785 Berlin, Tel +49 30 27891-0.
Lead analyst Shashank Thakur, Analyst

© 2021 Scope SE & Co. KGaA and all its subsidiaries including Scope Ratings GmbH, Scope Ratings UK Limited, Scope Analysis GmbH, Scope Investor Services GmbH, and Scope ESG Analysis GmbH (collectively, Scope). All rights reserved. The information and data supporting Scope’s ratings, rating reports, rating opinions and related research and credit opinions originate from sources Scope considers to be reliable and accurate. Scope does not, however, independently verify the reliability and accuracy of the information and data. Scope’s ratings, rating reports, rating opinions, or related research and credit opinions are provided ‘as is’ without any representation or warranty of any kind. In no circumstance shall Scope or its directors, officers, employees and other representatives be liable to any party for any direct, indirect, incidental or other damages, expenses of any kind, or losses arising from any use of Scope’s ratings, rating reports, rating opinions, related research or credit opinions. Ratings and other related credit opinions issued by Scope are, and have to be viewed by any party as, opinions on relative credit risk and not a statement of fact or recommendation to purchase, hold or sell securities. Past performance does not necessarily predict future results. Any report issued by Scope is not a prospectus or similar document related to a debt security or issuing entity. Scope issues credit ratings and related research and opinions with the understanding and expectation that parties using them will assess independently the suitability of each security for investment or transaction purposes. Scope’s credit ratings address relative credit risk, they do not address other risks such as market, liquidity, legal, or volatility. The information and data included herein is protected by copyright and other laws. To reproduce, transmit, transfer, disseminate, translate, resell, or store for subsequent use for any such purpose the information and data contained herein, contact Scope Ratings GmbH at Lennéstraße 5 D-10785 Berlin.