SCI CRT Awards Issue Oct 19

More documents

Recommendations

Info

Advisor/Service Provider of the Year ADVISOR/SERVICE PROVIDER OF THE YEAR WINNER: SCOPE RATINGS Scope Ratings has been selected as SCI’s Advisor/Service Provider of the Year, thanks to its involvement in innovative risk transfer transactions in unusual asset classes, such as project finance, and standardised bank deals. The rating agency’s work has been aided by a multidisciplinary approach to ratings. According to Guillaume Jolivet, head of Scope Ratings: “The rating of these transactions requires not only structured credit expertise, but also a deep understanding of the risks at asset level. It’s not easy to combine the two.” He continues: “However, Scope analysts don’t work in silos, thanks to our ability to deploy the right skills. The focus on diverse expertise has been reflected at governance level, through our use of multidisciplinary rating committees since the very beginning.” York 2019-1 CLO structure diagram Originator/ servicer Ring-fenced portfolio 1,268 SMEs £3.08bn Source: Scope Ratings Guarantee premiums Collateralised guarantee under the Credit Protection Deed Class A £2,395m AAASF Class B £264m ASF Class C £96m BBBSF Class D £124m BBSF Class E £233m NR “ STANDARDISED BANKS MAY INDEED DEMONSTRATE STRONG UNDERWRITING STANDARDS ” An example of the application of this approach is project finance, where Scope has been particularly active. Very few project finance deals have been rated, due to idiosyncratic risks, which increase the complexity of the analysis. However, a deep dive analysis of the specific assets can prove fruitful in this case. Scope was also one of the few rating agencies to have rated a dual-tranche transaction, Issuer York 2019-1 CLO DAC (Orphan SPV) Senior cash deposit CLN interest and cash collateral principal release Junior cash deposit Credit protection payment Fully funded A Notes - CLN B Notes - CLN C Notes - CLN D Notes - CLN E Notes - CLN Retained by Santander Placed with investors such as Santander’s York 2019-1 CLO. Rating analyses of senior mezzanine tranches aim to render the deals more comparable to public transactions. Jolivet notes: “SRT investors who conduct the due diligence are often sophisticated and such structures are generally non-standard, meaning they are not exactly comparable with flow transactions. Even so, we assess these transactions using a comparable expected loss approach, which is the core of our rating methodology.” Indeed, Scope applies a consistent rating methodology across transactions, including those originated by standardised banks. Jolivet states: “Our analysis of a deal incorporates the quality of the structure and the risk profile of the assets. Whether a bank is under a standardised or IRB approach may result in different constraints on our analysis. But this makes no difference, as long as the quality of data available to analyse the assets meets our standards and standardised banks have shown they can meet those standards.” He concludes: “Standardised banks may indeed demonstrate strong underwriting standards. These banks may actually sometimes share less sophisticated but more detailed information about their assessment of risks. What remains a key driver of asset quality, however, is the quality of asset origination.” HONOURABLE MENTION: AON Aon has raised awareness of risk transfer technology through education and training initiatives with global institutional clients that resulted in over US$600m of commitments to risk transfer strategies over the awards period. Aon has positioned capital relief trades as an alternative private debt solution that fits with its clients’ broader strategic allocation to private debt, either to meet income requirements or provide a higher and more attractive return on a risk-adjusted basis, compared to other illiquid credit strategies. As part of these efforts, the firm structured a vehicle for one client with capacity for €1bn in risk transfer. 26 SCI Capital Relief Trades Awards | October 2019 www.structuredcreditinvestor.com
Award-winning excellence in Structured Finance. Scope Ratings awarded best service provider of the year on Synthetic Risk Transfers by Structured Credit Investor. Unparalleled execution on complex and nonstandard transactions for the benefit of issuers and investors. Scope Ratings brings depth and transparency to credit investment decisions by offering an inside-out perspective on European credit markets. www.scoperatings.com Scope Ratings
Page 1 and 2: Securitisation innovation in focus
Page 3 and 4: Editorial London, October 2019 The
Page 5 and 6: SCI Capital Relief Trades Awards 20
Page 7 and 8: Issuer of the Year SSPAIN 2019-A st
Page 9 and 10: Arranger of the Year ARRANGER OF TH
Page 11 and 12: Close to clients Close to clients s
Page 13 and 14: Transaction of the Year Note Rating
Page 15 and 16: International Infrastructure Financ
Page 17 and 18: Title in Univers Condensed Light Su
Page 19 and 20: Investor of the Year INVESTOR OF TH
Page 21 and 22: Law Firm of the Year LAW FIRM OF TH
Page 23 and 24: CLIFFORD CHANCE - LAW FIRM OF THE Y
Page 25: INNOVATIVE CAPITAL OPTIMISATION SOL
Page 29 and 30: Personal Contribution to the Indust
Page 31 and 32: CRT News bank is a captive lender a
Page 33 and 34: CRT News Legacy SRT call possibilit
Page 35: Data Capital relief trades by juris

SCI CRT Awards Issue Oct 19

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?